I said it 4 months ago and I’ll say it again: this company needs to go bankrupt. Apparently they are burning cash at an accelerated rate as the economic crisis deepens. GM is now asking the government for $30B or else they will go bankrupt. The only thing more preposterous than their demand for $30B is the report they filed to back these figures. In estimates they call “conservative” GM says U.S. auto sales have bottomed in Q1 and will rebound nearly 40% in the coming 2 years. This is bordering on comedy. They are making the exact same mistake Bank of America is making: as long as the economy recovers we’ll be fine. Yeah, and if cancer just went away millions of people wouldn’t have to worry about their treatments.
GM is a flawed company. The union is killing them on the cost line and their uncompetitive cars are killing them on the top line. Why are the U.S. taxpayers dumping money into this blackhole? The market has deemed this company for bankruptcy. We created chapter 11 exactly for this purpose.
The fact that Rick Wagoner is still runnig this company is simply stunning….