Autoline on Autoblog with John McElroy

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Filed under: GM, Earnings/Financials, Autoline on Autoblog
GM IS ON ITS LAST LEGS

There is only one number that really matters in today's financial report from General Motors: how much cash it has in the kitty. And the answer is, not enough. GM is now burning through its cash reserves at a rate that will run short before Christmas.

Every month GM spends $13 billion to pay all the bills that keep the company running. And it has to pay out even more on top of that to meet other obligations, like paying the UAW for the VEBA or bailing out Delphi. Like all other companies, GM keeps a reserve of cash on hand that it can dip into when it doesn't sell enough new cars to get the money to pay its bills. But that cash reserve is running out fast.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 07 Nov 2008 16:30:00 EST. Please see our terms for use of feeds.


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