Posted on 04/19/2009 2:17:15 PM PDT by CutePuppy
General Motors is turning out to be the ultimate guzzler.
Just a few months after the crippled automaker tapped Uncle Sam for $13.4 billion in rescue cash to keep the company running, it warned yesterday that it needs a refill of $5 billion if it has any hope of making progress in resurrecting itself from its bloated past.
CEO Fritz Henderson said bankruptcy isn't the company's preferred option for its mandated makeover, but it's still probable, given the tough restructuring goals GM must meet to get more government loans.
Henderson said management and advisers are working on two parallel plans: one that involves bankruptcy and one that doesn't.
He said the added cash would help GM achieve a do-it-yourself makeover, which the government insists that GM complete in about six weeks.
The in-house plan requires slashing billions from labor costs and interest payments and shuttering excessive manufacturing capacity.
However, management is making little headway. Yesterday it decided against a major cost-cutting plan of shedding its AC Delco parts unit, and said it wants to keep it after all.
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(Excerpt) Read more at nypost.com ...
Just Today, somewhere South of Florida...OBAMA SAID...
“I will NOT throw money down a Black hole”
Looks like he will throw our Money down a Bankruptcy hole. Sorry BHO, we don’t believe you anymore. You lied too often to too many people.
Sorry, but the cash GM is getting is chicken feed compared to what has been poured down the hole of the likes of AIG, Citicorp, and JP Morgan. And, unlike those companies, GM actually produces something of values. While no one likes the UAW, at least they don’t pay their people millions of dollars in bonuses.
Not that I like any bailout, mind you. I’m just sick of people kicking GM and turning a blind eye to the real vampires.
If GM and Chrysler fold or are forced into bankruptcy, there will be the shedding of thousands of jobs in Michigan and throughout the country - maybe over 200K.
This is the beginning of our depression.
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