I’ve got a question: What’s wrong with GM’s books? Whatever it is, the union and management are all in on it. The Feds ought to sic an army of forensic accountants on GM, heck on all of the Big 3, before the automakers get another dang dime.
There’s nothing really “wrong” with GM’s books. It is their business plan.
They knew they were bleeding cash since about 1999 to 2000. Starting in 2002, they starting buying down UAW contracts, etc. They’ve gotten a new pay scale for new employees, etc.
Still, they were losing money on most cars they shipped - but they would lose money more slowly than if they had the level of sales they’re seeing now. Much of their expense load is fixed, and they can’t shed it when they’re not selling cars. If they could sell enough cars, they could make the cash they have last much longer, but with auto sales plummeting as they have this year, the true scale and inflexibility of their expense load comes into view.