And GM's scramble for cash begins.

 

So does that mean they have a buyer for Hummer?

 

GM just pulled the last $3.5 billion from a $4.5 billion line of credit. Delphi is getting $1.2 billion and they were retiring $750 million in other debt that was maturing. They are all done with private loans and need a chunk of that $25 billion low cost loan from the feds or their cash on hand will dry up.

 

I know that there is a Mid Eastern company that's very intrested. But what GM is doing is actually putting Hummer up for sale. Everything up to this point was just studies and floating the idea.



Exactly.

 

So what happens to my 100,000K mile warranty when GM goes belly up next year?

 

Got ya

 

So does your warranty.

All kidding aside, I thinkit is wise for GM to sell Hummer, because I don't think the large SUV craze will return anytime soon, and the Hummer (along with the Excursion that has already exited stage right) is the posterchild for the big wasteful SUV now.
It does indicate another sign has pased on the road to nowhere though, doesn't it?

Not good news at all.

 

How is GM gonna come up with the $34 billion it promised the UAW to fund VEBA? $1.7 billion was deferred from 08 to 09 (with interest) and another $7 billion is due in 2009. I just don't see GM comming up with nearly $9 billion to fund VEBA next year.

 

I hope GM goes under

 

Where did you get a one hundred million mile warranty in the first place?

 

if/when GM goes belly up will it go suddenly or will it gradually ramp up? will new / future vehicles be discussed on here one day then suddenly a "... files for chapter 11" post or will it be incremental things leading up to the end?

 

GM wont cease operating, they will declare bankruptcy and try to reorganize. Delphi declared bankruptcy 3 years ago and still have not emerged even though GM keeps throwing $billions their way. If 2009 is as bad as it is now, I dont see them making it through 2010, and thats figuring $10 billion from the feds.

 

Let me throw something else out there that you may or may not know.

Last weak the General Motors Corperation exhausted their last lines of credit.

In laymans terms, GM has maxed out their credit card and all they have is what they have in the bank and whatever they can get for what they own.

Wanna hear something even more scary?

The Ford Motor company currently has more cash in the bank than General Motors.

Not scared yet?

The small, essentially US only, 2 divisions plus Dodge Trucks and Jeep, heavily partnered Chrysler Corperation has 11 billion dollars in the bank.....

General Motors, the planet's largest car maker, a company whose reach extends to China, Asia, Europe, the US, Australia, & South America, a company whose sales drawf Ford and makes Chrysler look like a side show, had.... get this... only 16 billion dollars as of last June.

GM is easily in the worse shape of the big 3 automakers.

Although you wouldn't have expected it a year ago, Ford is looking like the the company most likely to be still standing & unscathed of the big 3. GM is very, very sick right now. I'd rank Chrysler above GM providing Cerberus doesn't just simply sell it off in pieces.

I would say that GM has the biggest potential to reverse itself, but it seems the same Keystone Cops that were running Ford seems to migrated to GM:

* The Chevy Orlando was cancelled because it would be the only 7 passenger small van in the US... never mind it would have created a new market.

* The Performance division, the American BMW division, the Excitement division gets a version of.... the Chevrolet Aveo?!

* The RWD Impala that GM already spent quite a bit of money on was pulled at the last minute because as a line it got 1 mpg less than a FWD one based on an Espilon.... which GM now has to spend additional money on to develop.

* Pour money and press on a electric car they will lose money on while charging between $30-40,000 for it

There's more, but it's late and I think we get the picture.

 

Lease prices way up on their cars and trucks because of low resale and residuals, tightening credit markets making it more difficult and costly to get a loan, spikes in fuel prices and shortages in many states. There are many pressures keeping sales volume off with no relief in sight.

 

Then the business cycle swings up, the economy is doing well again and GM is back to better than normal! The 90's were fun...