[carl in alaska]

GM is in trouble in the long run. They make all their profits off of trucks, SUV's, luxury cars, and car financing. Their costs are totally uncompetitive in the mid-sized and small car market. Now the trucks, SUV's, and Cadillacs are selling poorly because of high gasoline prices. Gasoline prices will continue to rise in the next 10-20 years and GM is not going to be able to make any profits without some serious cost-cutting. They're in trouble and they can burn up most of that $35 billion in cash within five years. That said, I think they will be able to negotiate some cost reductions with their unions and salaried workers and they probably won't go bankrupt. But if their workers are obstinate, it could happen.

[ken5050]

GM losesmoney on every car they sell..Perioed..Buiyers arfe conditioned to wait for the rebates and the zero % financing..which costs huge $$$$..plus, they keep on making the cars, as the inventory piles up on dealers lots..GM books a "profit" when the car leaves the manufacturing facility..Also,as they cut prices..the residual value that GM assumes on its leases is pure fiction...and they will have to eat that very soon..It's a death spiral..