GM is running out of money and may not have enough cash to continue running its business. They’ve burned through $6.8 billion in the last quarter and will exhaust their reserves by the end of 2008 without government intervention or a significant increase in auto sales. Which sounds more likely to you?
Dave Cole, chairman of Michigan think-tank the Center for Automotive Research, said the chances that GM would be forced to file for bankruptcy were high unless Congress takes almost immediate action to bail out the industry.
“This is not something that can go on and be dealt with in the next year, it needs to be dealt with in the next few weeks,” said Cole. “When your cash is gone, you’re gone.”
GM: Almost out of cash [CNN]
(AP Photo/Paul Sancya, File)