[amit]

The articles from reputed news magazines speak for themselves.

With just $16.2bn left in the bank, and about $12bn of that needed as a cushion to fund its day-to-day operations, a day of reckoning is now within sight.

GM didn't attempt to hide that fact. "Even if GM implements the planned operating actions that are substantially within its control, its estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business," it said.

Source: The Independant.

'I Didn't Think This Day Would Ever Come.' GM Workers Live In Fear As Company Hints It Could Go Broke

"General Motors warns it could run out of money by next year."

Source: CityNews, Canada.

General Motors warned Friday that it may run out of money by the end of the year

GM has said it could fall short of cash needed to operate in the first few months of next year, and Ford has said it has about seven months of money

If GM files for bankruptcy, there is "a very high risk" that it would pull in Ford and Chrysler, too, because GM probably would be forced to discount vehicles deeply to generate cash for creditors, and other automakers would be forced to follow.

Source: Insidebayarea website.

[ported_head]

Atleast it's not enough of a deterrent to the Camaro launch. An automotive bailout package is anyway on the cards.

[amit]

A CNN report on October 15 says GM may actually be better of bankrupt.

CNN.

@ported_head: I agree. But given it's current way of operating it's business, I think, any amount of aid package would be akin to dumping cash into a bottomless pit. Even the latest ACI reports that GM, India's expansion plans maybe put on hold because the American HQ has to no money to fund such plans now.

It's sad. Specially now when they seem to have some exciting cars in their new line up like the Camaro and Cruze.

Having said that, the Camaro, no matter how good it is, will not save them from going broke. What they need is volume cars that will sell in huge numbers and not another gas guzzling muscle car. Sure, the Camaro will do wonders for the companies image but what good is image if you don't have cash in the bank?

Another article that says that the Volt and Cruze are 'special cars' for GM and their launch will not be delayed no matter what the crisis.

the Cruze, along with the Volt, has been given a special "protected" status by GM. No matter crisis materializes, GM says, the Cruze will arrive on schedule.

About the Camaro:

It might seem odd to re-launch a muscle car in the age of high gas prices, but GM is playing up the Camaro's fuel economy. Its 26 mile-per-gallon will offer the same horsepower as the current-generation Ford Mustang's 22 mpg V8.

Source: GM's new product line up.

[ported_head]

Amit, I was being sarcastic. It's quite surprising, that while it is obvious that volume based, fuel efficient vehicles are probably the only foreseeable refuge for these bankrupting companies, they still choose to go ahead and launch a 2 door sports coupe with a 6L V8.

The government still sees hope in financial institutions responsible for a trillion dollar loss, with another bailout package in the works too. They will in all probability fund these companies for as long as they need to, too.

[HotChillyPepper]

I think most of the companies are in the same situation, but they are not making it public due to many reasons. Most of us really dont know the seriousness of the issue till now. Inidan IT industry gonna take a huge hit by next year Q1. Currently Inidan Compaines are doing the projects signed off before and continue to generate income. But there is no new projects coming in. I feel companies will be forced to lay off by Q1 2009.


What would be the future?

[deepclutch]

oh! shocking surprises :( .

[sabret00the]

Just read the CNN report. It is so hard to believe that all this is happening so fast and industrial Americas along with the rest of the worlds financial health is changing so fast. There used to be a time why I was a child people would get so excited to see a "Made in USA" tag behind watches and other things. Made in America was like the best and most authentic in industrial products. What has the world come to now. So hard to believe that these big daddies of the Automobile world are now struggling for a breath of fresh air.

[aaggoswami]

I think right now they have some good products on hand.
Volt is controversial as it was almost/is given freedom from taxation or some subsidy or something like that, though I am not sure what it was and Toyota opposed it.

The new Daewoo Lacetti i.e. new Optra i.e. new Nubira has made it to Korean market. Just launched with 1.6 114bhp motor.
Link: Chevy Cruze Based Daewoo Lacetti Launches in Korea - worldcarfans
So these two cars have sufficient strength to avoid bankruptcy.
Moreover the Camro just made it and if the success of retro sytled Mustang is anything to go by, then Camro will sell well.

This is very close, but now GM has sufficient weapons on hand to fight.

[sridharps]

People are talking about a US govt bail out for the big three consisting of Ford,GM & Chrysler - all 3 companies have jointly approached the govt - but it remains to be seen whether the new govt will oblige. The problem is where to stop, then?
But having said that, these are iconic names and some of the greatest symbols of American Capitalism.
It would be a very sad if these companies shut shop -I, for one, sincerely hope that things turn out alrite for them.

[HappyWheels]

So, is this going the Daewoo way?

Hope to God it's not!

[Mpower]

This is based on the assumption that car sales will not pickup. If it does, then it should not be a problem.

Moreover, the US government will not let GM or Ford go down. Its as simple as that.

[AMATMO]

volumes dont mean anything if they dont generate profits,i think they should sell some products to other manufacturers and see if they can can profits even if it costs them their rank in terms of number of cars sold and go the european way they sould focus on improving their brand image

the primary issue for any company is profits then comes the question of market share

even honda firsts focused on its global favorites like civic,accord etc etc and many others and now the\at it has spare money its experimenting in different segments and slowly growing
cause selling more variety of models actually also becomes a big burden

[nemo]

Ford too reported huge losses -- some 4bn or something -- this quarter. Both the companies have been talking about restructuring and turnaround for the last couple of years and nothing much has happened yet. I sincerely wish these companies somehow sail through the troubled times.

[psp62in]

BTW, does any one know what is the condition in the current turmoil of FIAT Int which almost went bankrupt a few years ago?

[theMAG]

Originally Posted by Mpower

This is based on the assumption that car sales will not pickup. If it does, then it should not be a problem.

Moreover, the US government will not let GM or Ford go down. Its as simple as that.

Mp,

I guess this will work both ways- even if car sales pickup, that'd only be buying GM some time since some of the reports I've been reading claim that US car sales are currently at a 25-year low. GM needs a significant bump up in sales just to return to shaky financial ground from its current no-financial ground. The other scenario is even worse - if car sales continue to drop, they'd be bankrupt well before the estimates.

You're completely right about the US government propping up GM/Ford when it comes to that. The last thing a new American president wants is to have 2 American institutions go bust first thing when he takes power.