GM talks about the "100-day window"
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From: Michigan's left coast
GM talks about the "100-day window"
Yikes:
http://www.autonews.com/article/2008...11059959/1128/
Anyone else see the hidden message in that particular choice of words?
http://www.autonews.com/article/2008...11059959/1128/
General Motors' North American president is urging the rest of the auto industry to let Washington know the extent of the industry's financial crisis.
In a speech tonight to suppliers in Detroit, Troy Clarke said dealers, parts makers and automakers need to do all they can to show "anyone who will listen" that a vibrant industry contributes to the health of America.
"This may be the most crucial time in the history of our industry," Clarke said in prepared remarks for a speech to the Original Equipment Suppliers Association.
Calling the next 100 days critical for GM and the industry, Clarke said GM is working around the clock to evaluate all its options. It will continue to "take the tough, but necessary actions" to succeed, Clarke said.
In a speech tonight to suppliers in Detroit, Troy Clarke said dealers, parts makers and automakers need to do all they can to show "anyone who will listen" that a vibrant industry contributes to the health of America.
"This may be the most crucial time in the history of our industry," Clarke said in prepared remarks for a speech to the Original Equipment Suppliers Association.
Calling the next 100 days critical for GM and the industry, Clarke said GM is working around the clock to evaluate all its options. It will continue to "take the tough, but necessary actions" to succeed, Clarke said.
Clarke emphasized the urgency for GM to get funding now to continue to move critical programs forward. He says the $25 billion federal loan program recently signed into law could lower borrowing costs for manufacturers and suppliers investing in energy-saving technologies. He added: "I wish this time-line was within our 100-day window, but we have no assurances to date."
GM is also seeking federal help to support a proposed merger with Chrysler LLC.
Tonight's meeting was closed to the media.
GM is also seeking federal help to support a proposed merger with Chrysler LLC.
Tonight's meeting was closed to the media.
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From: SE MI
Government says the original $25 billion will take 6 to 18 months to actually reach the automakers. With 3 or more months like October, that will be like throwing a life jacket to a person who has already drowned. Domestic automakers need some front money-like now.
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From: All around
Originally Posted by Eric Bryant (from other thread)
Sounds like the automakers now want the federal government to fund the VEBA payments If this was the plan all along, then this borders on outright fraud.
Of course this is what they want. After the banking industry got a float from the government, they want the same treatment. And with 100 billion here and 700 billion there, who honestly thinks they are going to settle for 25 billion?
And they know the unemployment the Govt would have to pay if they shut down would be incredible, and thats just more leverage.
Plan all along? I dont know. But its certainly the plan now. GMs board messed up, and now they are going to hold the country's unemployment rate ransom till they get a pat on the back and have all their mistakes paid for.
And the board will carry on, knowing if they mess up the govt will simply bail them out again.
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From: SoCal
They have the man they wanted in the White House and a sympathetic Congress about to start so I'd expect their bailout will be moved up.
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I don't know about the sympathetic Congress.
Nancy Pelosi is no friend of the automakers. And now I read that Dingall (D-MI) may be replaced by a dem from CA. One of Pelosi's cronies.
I can't remember the committee that Dingall heads but it would be beneficial to the Big 3 if he were to maintain his position.
Nancy Pelosi is no friend of the automakers. And now I read that Dingall (D-MI) may be replaced by a dem from CA. One of Pelosi's cronies.
I can't remember the committee that Dingall heads but it would be beneficial to the Big 3 if he were to maintain his position.
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From: Memphis
I have to wonder how much this sinking ship mentality is going to hurt their sales? I certainly have to admit that while the Chevy Malibu, Cruze, and Volt are all cars high on my list of interests... they look quite a bit less appealing when I consider the fact that GM is in cost cutter mode and thus known issues might not be fixed correctly on the assembly line and who knows where I might have to get parts and service from a couple years down the road if they're out of business.
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From: Albany, NY
I was just about to make a thread about that
Also reported
That is more than the stock is worth.
Also reported
GM, the nation's largest automaker, reported it lost $4.2 billion, or $7.35 a share, excluding special items. That's up from the loss $1.6 billion or $2.86 a share it reported a year earlier and was far worse than the forecast of analysts surveyed by earnings tracker Thomson Reuters, which had forecast a loss of $3.70 a share.
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There is no doubt they are in bad shape but I don't think the 100-days as a time frame means that GM expects to be out of business in that amount of time unless something changes. I think even some of the more dire predictions didn't show them running out of cash until mid 2009.
Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business. Looking into the first two quarters of 2009, even with its planned actions, the company's estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve, it receives substantial proceeds from asset sales, takes more aggressive working capital initiatives, gains access to capital markets and other private sources of funding, receives government funding under one or more current or future programs, or some combination of the foregoing. The success of GM's plans necessarily depends on other factors, including global economic conditions and the level of automotive sales, particularly in the United States and Western Europe.
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Joined: Jan 1999
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From: Panhandle of West Virginia
More on the end:
http://money.cnn.com/2008/11/07/news...ion=2008110711
They are out if cash at the end of this year and out of business before summer if no help comes.
http://money.cnn.com/2008/11/07/news...ion=2008110711
They are out if cash at the end of this year and out of business before summer if no help comes.
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Posts: 976
From: SE MI
GM can't borrow money.
GM can't sell assets.(Hummer, AC Delco, Medium Duty Trucks, World Headquarters).
Cutting salary workforce costs money.
Vehicles are considered sold when they arrive at the dealers, so cutting prices to boost sales won't help GM.
GM has $16 billion in cash on hand and $11 billion is minimum needed to operate.
At current cash burn, GM will be down to minimum cash in Jan. 09.
If GM declares bankruptcy in Jan. 09, will the Camaro still be produced on schedule in Feb. 09?
GM can't sell assets.(Hummer, AC Delco, Medium Duty Trucks, World Headquarters).
Cutting salary workforce costs money.
Vehicles are considered sold when they arrive at the dealers, so cutting prices to boost sales won't help GM.
GM has $16 billion in cash on hand and $11 billion is minimum needed to operate.
At current cash burn, GM will be down to minimum cash in Jan. 09.
If GM declares bankruptcy in Jan. 09, will the Camaro still be produced on schedule in Feb. 09?
Registered User
Joined: Jan 1999
Posts: 1,547
From: Panhandle of West Virginia
GM can't borrow money.
GM can't sell assets.(Hummer, AC Delco, Medium Duty Trucks, World Headquarters).
Cutting salary workforce costs money.
Vehicles are considered sold when they arrive at the dealers, so cutting prices to boost sales won't help GM.
GM has $16 billion in cash on hand and $11 billion is minimum needed to operate.
At current cash burn, GM will be down to minimum cash in Jan. 09.
If GM declares bankruptcy in Jan. 09, will the Camaro still be produced on schedule in Feb. 09?
GM can't sell assets.(Hummer, AC Delco, Medium Duty Trucks, World Headquarters).
Cutting salary workforce costs money.
Vehicles are considered sold when they arrive at the dealers, so cutting prices to boost sales won't help GM.
GM has $16 billion in cash on hand and $11 billion is minimum needed to operate.
At current cash burn, GM will be down to minimum cash in Jan. 09.
If GM declares bankruptcy in Jan. 09, will the Camaro still be produced on schedule in Feb. 09?
