GM warns it could be out of cash by March 31 if second $5.4M loan is delayed
General Motors is ringing the alarm bell over a delay in the second installment of its bridge loan. Chrysler faced the same thing when it was waiting on its first installment, but eventually got its money in time. GM puts the delay down to having to fill out a great deal of paperwork and having to wait on the Treasury to finish doing the ballroom-and-cocktail circuit during a little thing called the presidential inauguration. GM President Fritz Henderson said the money should arrive "in the next several days." And even though it's still only January, just in case you needed a reminder, he also said "If we don't get our second installment ... we'll run out of cash" by March 31. Cue the wailing and gnashing of teeth...
[Source: Detroit Free Press]
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Reader Comments (Page 1 of 3)
no. 7:07PM (1/21/2009)
BILLIONS!
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Samurai Jack 7:07PM (1/21/2009)
Great caption Autoblog. Now, might I suggest to this fellow and GM: How about making your money the old fashioned way? Earn it.
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zamafir 10:11PM (1/21/2009)
Well put, I wish GM and Chrysler had quality management like Ford and simply ran their business correctly. Pity we couldn't vote their management off the island along with Bush and anyone else who's very keen on not running their business with a modicum of fiscal reality.
alex 11:45PM (1/21/2009)
@zamafir
you don't know what you're talking about. the only reason ford doesn't need many (yet) is that they mortgaged everything they own including their headquarters building and got a $22 billion line of credit. Why didn't GM do the same? Well they would have had the govt and wall street not royally fucked up the credit market.
just because ford got desperate and took out a huge loan before the credit crunch doesn't mean they are better run or have better "quality management" as you've said (i'm not even sure what that means in this context)
Kattleox 1:03AM (1/22/2009)
Ford has changed faces recently. Quality management? No, but with the Ka, new Mustang, Taurus, Focus, Fiesta, et cetera, they should be in decent shape for a while, so long as they don't make said cars at a loss like some analysts are predicting.
Only problem is that now they have to compete with Fiat and Chrysler. (I don't think anyone has said that before...I'm the first in history!) GM, on the other hand, has the Volt. Thats it. Hope it works out for you guys!
Skipper 6:17AM (1/22/2009)
We elected Obama to spread the wealth. Spread it like we earned it.
ronEbear 7:18PM (1/21/2009)
Someone call the WANHHH-mbulance.
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ronEbear 7:18PM (1/21/2009)
Next week they`ll use the old "BUT YOU`RE GOING TO BE PUTTING MILLIONS OUT OF WORK" scare tactic.
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notYou 11:37AM (1/22/2009)
(crappy blog software put my original reply elsewhere..)
They'll only pull that after Congress - trying to cover their own collective arses - make the case that "We've already loaned them billions, if we don't loan them more we'll lose our initial investment!"
And the downward spiral will continue. On, and on, and on until there is nothing left (or the Chinese stop buying our t-bills - same thing).
But, Change Is Here! We took the lowest approval-rated Congress in history* plucked 2 of it's members - one of the longest, and one of the greenest - and plopped them in the Executive to rubber stamp - err, fix! - things. Brilliant!
(George Bush's much-cited and well-publicized low was 18, Congresses' well-hidden and relatively unpublished was 8. So, by comparison, W had more than 2x the support of Congress at their lowest comparable points. Hmmmm.)
fyi: Not trying to politicize the discussion any more than to point out the reasoning (?) and motives behind the actions. Maybe once people understand how we got _here_, they can start working to ensure we don't get _there_, but I'm in the minority on this one.
Xander 7:19PM (1/21/2009)
I just like how everyone makes such a stink over the small slice the automakers got when you know they will be made to repay it if they survive. does anyone believe the banks will repay their 700 billion or whatever it amounts to? Certainly not if the republicans return to power when they recover. "That would slow investments we need more tax cuts!!!"
Bitch all you want at detroit but when full size trucks rule the roost yet again how can you blame them for serving up what the people are ordering?
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ronEbear 7:31PM (1/21/2009)
The people ordered those large trucks to due pressure caused my America`s obsessive preoccupation with homosexuality. It seems that in the U.S.A you are considered homosexual for not driving a land barge, 4X4 with a v-8 of course.The auto manufacturers know this and have been exploiting it since the word homosexual was created. And why is America so obsessively preoccupied with homosexuality? The bible. See, homosexuals and anyone who does not believe in Jesus are bound to go to hell.
Add to that easy-to-get loans and manliness (or masculinity) is but a monthly payment away.
The Luigiian 8:03PM (1/21/2009)
"The people ordered those large trucks to due pressure caused my America`s obsessive preoccupation with homosexuality. It seems that in the U.S.A you are considered homosexual for not driving a land barge, 4X4 with a v-8 of course.The auto manufacturers know this and have been exploiting it since the word homosexual was created. And why is America so obsessively preoccupied with homosexuality? The bible. See, homosexuals and anyone who does not believe in Jesus are bound to go to hell."
Or maybe Americans just like big vehicles because American cities aren't crowded enough to warrant tiny cramped econoboxes.
I don't know what my sexuality is, but I do know that my car is a Mercury Mystique LS with V6 and automatic. Beautiful car, based on the European Ford Mondeo. Real sporty and everything. But it gets the same mileage as a typical American midsize sedan and is much smaller. My mom's Ford Escape gets the exact same mileage, albeit with a four cylinder engine and worse driving. She has a full hatch, comfortably sized backseats and big storage and headroom. My car, by comparison, is cramped.
Ahem. All that aside, what I'm getting at is that I've driven my Mystique, my mom's Escape and her F-150 too. The Mystique drives nice but it's cramped. The Escape is big but it drives like crap, you can't corner it at more than granny speed with out feeling like you're going to turn over. But my mom's F-150 feels like the best of both worlds. It's still a bit tippy, but it feels less so (because it's heavier lower in the chassis) and therefore makes me feel more confident behind the wheel than the Escape, all with more space than my Mystique.
I think a lot of Americans feel the same way.
rypt 8:26PM (1/21/2009)
Luigiian, how fat are you to feel "cramped" in a Mondeo sized car.
Something the size of a Civic is all that a FAMILY with 2 kids really needs, a couple with just a baby can make do with a Yaris, and a couple just needs 2 seats.
I'm 6ft 2, and I have plenty of leg room in the back of my Dad's Corolla if I'm ever passenger in there with my dad and mum up front.
Hell, 4 (inc driver) people of my size fit fine in my mates AE86...
The Luigiian 8:57PM (1/21/2009)
@rypt:
I'm ~170 lbs and 5'10.
Yes, there's enough room in the Mystique. But it would still be nice to have a little more room. I apologize, I should clearly buy a Corolla because I can fit in it, and therefore there's no real reason for me to want a roomier vehicle.
Sea Urchin 9:09PM (1/21/2009)
Liguan got it right when he said "I don't know what my sexuality is" because with Mercury Mystique LS you can not get laid with girl or a guy.
People still buy Mercuries, i thought that they went out of style in 80's.
TurboPanzer 9:59PM (1/21/2009)
ronE: Some possible slogans for the D3 pickups:
"F150: Built GOD Tough!!"
"Silverado: Like a Rock in the Garden of Eden!!"
"Ram: Drive this or go to Hell!!"
Sea Urchin: LMAO that's a good one :D
Luigiian: You might be a hermaphrodite. It's best to get that checked out by a doctor.
The Luigiian 10:40PM (1/21/2009)
@TurboPanzer: Ahahaha, good one. Except I said "sexuality", not "sex." Very different things. I was referring to RonEBear's comment about guys that like trucks being closeted homosexuals. I don't know or care whether I'm gay or not, I just don't like driving cars as much as I like driving trucks.
@SeaUrchin: Kinda something like that.
dinnercoat 11:12PM (1/21/2009)
Oh TurboPanzer, you made me lol.
"Drive this or go to Hell!"
Priceless.
TurboPanzer 12:31AM (1/22/2009)
@Luigiian: I don't care whether you're gay or not either. And I can totally understand some people just want to drive a truck and not a car. Frankly there's no crime in that. It's your money and if you're happy with what you bought, then that's what matters. :)
@dinnercoat: Glad I can help. Just make sure you're not eating your DINNER at the same time while laughing out loud, otherwise your COAT will bear the chunks. :D
Frank 8:02AM (1/22/2009)
Sometimes blog comments just go off in a total different direction and you think "WTF!?".
:-)