Thursday, February 26, 2009

GM Expects 'Going Concern' Notice

by Bill McBride on 2/26/2009 09:10:00 AM

Another step towards a second bailout or bankruptcy ...

From the WSJ: GM Posts $9.6 Billion Loss, Burns Through $6.2 Billion in Cash

GM's revenue fell as the worsening economic malaise drove most of GM's four regions into the red. The company burned through $6.2 billion in cash in the quarter, less than the $6.9 billion in the three months to Sept. 30.
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The nation's biggest domestic auto maker said Thursday it lost $30.9 billion for the full year and expects an opinion from its auditors as to whether the company remains a "going concern" when its annual report is issued in March.
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GM has lost more than $70 billion since 2005 ... The company has relied heavily in emerging markets, especially Latin America, Eastern Europe and Asia, to offset losses at home. But as the economic troubles that began with the mortgage meltdown and banking crisis in the U.S. spread around the globe, GM's is facing losses most everywhere it operates.