GM Says Cash Could Run Out Soon

by Darren

One thing you have to say about General Motors is that no company appears able to burn cash faster than them. Government money has already arrived, but according to the company, it just won’t be enough. The company has already received a $4 billion dollar payment, but a second payment for $5.4 billion that was scheduled to be received on January 16th didn’t arrive.

“If we don’t get our second installment of the funding we’ll run out of cash, it’s that’s simple,” said Fritz Henderson. “We’ve been finalizing what we need to do. We anticipate receiving it. But it’s critical that we receive it.”

The last payment for GM is scheduled to be paid out in mid-February, but those funds are contingent upon the government receiving a detailed business proposal from the company that explains how they plan on turning things around.

If the money doesn’t arrive soon, the whole company will go under. I wonder how many tears (other than from workers and suppliers) the world would really shed in this case.