Posted on 02/26/2009 9:31:36 PM PST by marshmallow
General Motors posts $30.9B annual loss, keeps spending billions with costs too high
DETROIT (AP) -- For General Motors Corp. nothing has stopped the bleeding. Not cutting 50,000 jobs in the U.S. Not closing 11 factories. Not $13.4 billion in government loans.
The teetering company, once the symbol of American industrial might, revealed Thursday that it burned through $19.2 billion in cash last year on its way to a $30.9 billion loss. The century-old automaker said its only hope of living another year is more aid from the government.
GM has continued to spend on a company too big for the market, paying workers when plants are closed and covering other costs such as machinery, marketing, pensions and health care.
Expenses are so high and income so low that GM warned that auditors are reviewing whether it can continue as "going concern." Auditors are determining whether there is substantial doubt about the company's ability to stay in business.
To many, though, the doubt has existed a long time. The company has piled up $82 billion in losses during the past four years, much of it in restructuring charges.
"It's really a bit of a stamp of notice on something we already recognize," said Kimberly Rodriguez, restructuring specialist for the audit, tax and advisory firm Grant Thornton LLC. "The fact that they're into the government for financing in order to maintain viability pretty much says there's a going concern problem."
GM executives met for several hours with members of President Barack Obama's auto industry task force Thursday. Company spokesman Greg Martin said the meeting "was just the beginning of the hard work ahead for GM and the president's team."
"We found a genuine willingness among the task force to understand our business, industry challenges, and GM's restructuring plan," Martin said.
(Excerpt) Read more at google.com ...
I don't know what they are paying the auditors but I can answer that question.
Until the County bought the GM plant outside of Tinker AFB, GM still had workers inside the plant doing zero, zip, nada day in and day out. It is disgusting and I don’t feel the least bit sorry for the GM union workers. UAW brought this on with all their benefits and pay that went far beyond what they should have been paid to do the same job hour after hour.
The more I heard about GM, the happier I am not to own a GM vehicle. A lot of the original bailout went to Brazil to retool their plant so why should we give GM one more penny. They have had too many automobile lines for years.
There is no justification in “lending” them any more federally guaranteed dollars. They need to file Chapter 11, then get federal loans for a very stripped down version of their current self. Any taxpayer backed loans to them absent a Chapter 11 filing are like burning our (taxpayers) dollars - i.e., futile.
I heard Judge Napolitano on FNC a week ago remark that what the lame duck Bush Administration gave Chrysler and GM were not first priority loans. So, when the inevitably bankruptcy filing happens - a number of parties will be in line ahead of the taxpayer.
The Obama administration will try to weave this into a justification for national health care (”see what it did to GM?”) but will have a bigger turd to swallow in the form of GM and Chrysler pensions offloaded onto the PBGC.
You want big government - you got it!
Two thoughts:
1) Ford. Refusing government money. Says they will survive. Negotiated some kind of an agreement with the UAW earlier this week.
2) Go to your local tea party folks. It’s tomorrow.
Don’t make stories about having to work. There isn’t one decent business owner in this country that will penalize or fire you for attending something like that.
Missing 2-3 hours of work... is NOTHING... when you consider the price of not being heard, or not making a stand.
Sorry ‘bout that. Done preachin’.
Have a Nice Day!
The Liberal Fascists have finally killed the Goose that laid the Golden Egg, now they are demanding an INCREASE in golden egg production!!
I just don’t get it....
I detect a fundamental flaw in their business plan: in order to function as a business they require customers to buy their product. And no one has money to buy their product. No matter how much money the federal government pours into GM and Chrysler, they’re done.
GM - I want you to succeed, I really do. You are an icon, and my Dad worked at his job to supply GM for 35 years.
But you are obviously too fat, bloated, and out of touch. You don’t run your company, the unions, the Gov’t, the EPA, and the States do. You have become a political entity, not a business.
Stop spending! It’s like that law of logic about digging a hole.
Do a search in the article for the word “union” or “UAW” (Control and F buttons) and you’ll find both abundantly...absent.
Chapter 11 Bankruptcy was and is the answer, as late as it is. Let a bankruptcy panel of judges oversee the termination of ALL contracts and reorganization into a mean and lean motor company.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.