Further Proof To Why I Think GM Will Become The Next VW

Posted: November 7, 2008 in Headlines, Tech, World

Well first, this bit of news~


GM Says It May Run Out of Operating Cash This Year (Update1)

By Jeff Green and Mike Ramsey
bloomberg.com

Nov. 7 (Bloomberg) — General Motors Corp., seeking federal aid to avoid collapse, said it may not have enough cash to keep operating this year and will fall “significantly short” of the amount needed by the end of June unless the auto market improves or it raises more capital.

The largest U.S. automaker reported a $4.2 billion third- quarter operating loss and said its available cash fell to $16.2 billion on Sept. 30 from $21 billion at the end of June. Merger talks with Chrysler LLC were suspended.

“GM is making a pretty direct plea for help,” said Pete Hastings, a fixed-income analyst at Morgan Keegan Inc. in Memphis, Tennessee. “The message is, `we’ve done all the things we can do, and we need help.’ And if we don’t get help, fill in the blank.”

The drain on cash reflected the strain of GM’s dwindling U.S. sales, which slumped 21 percent in the quarter as the credit freeze deepened. Chief Executive Officer Rick Wagoner and the CEOs of Ford Motor Co. and Chrysler met yesterday with U.S. House and Senate leaders as the automakers seek $50 billion in new government aid, a person familiar with the proposal said. (more…)

If there is anything I would be willing to put cash on the table in the form of a bet, it would be my prediction that in the name of saving thousands of American jobs (REMEMBER THAT LINE), General Motors will come under the full umbrella of the Federal government.

Second. Ford already has a Chinese partner that is launching electric cars like the one pictured below in Canada.

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One of the biggest complaints about alternative fueled cars has been cost. With Chinese workers (who btw are paid much lower than American workers) in the mix, I can see something like this eventually coming to our market within the next few years and be marketed as the affordable choice to help save the environment.

Just don’t call it something stupid like the GM Green Machine.

h/t: autobloggreen

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