GM - Turning things around. Yeah, right.Submitted by austrianschool on Thu, 02/26/2009 - 13:32
General Motors posts $9.6B 4Q loss, burns through $6.2B of cash while seeking government loans
The above comes from the following article:
According to the article, GM "lost $30.9 billion for the full year and expects to state in its upcoming annual report whether its auditors believe the company remains a "going concern." GM and its auditors must determine whether there is substantial doubt about the automaker's ability to continue it operations."
"Substantial doubt" ? During every day of 2008 (including weekends and holidays), they lost about $84.5 million in each of those days. During 4Q08, they lost $15.71 per share. The cash burn for 2008 was $19.2 billion and, according to their CFO, he expects that they will be able to reduce that cash burn to "only" $14 Billion for 2009 and even then would still need more from the government. Their survival now depends on further taxpayer-guaranteed loans.......and still their auditors must determine whether or not there is "substantial doubt" as to whether or not GM is viable?