GM Faces the Music
After months of speculation, General Motors Corp. has finally admitted that the likelihood for survival outside of bankruptcy is slim.
The automaker filed its 2008 annual report with the Securities and Exchange Commission today. In the 10-K filing, GM’s auditors, Deloitte & Touche LLP, admitted that a chance at viability was remote.
“The corporation’s recurring losses from operations, stockholders’ deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern,” Deloitte & Touche auditors wrote in the report.
During the past three years, GM has lost $82 billion.
GM’s stock has dropped $0.31 per share today. It was trading at $1.89 as of 10:35 a.m. In late 2007, by comparison, the stock was trading at about $30 per share.
Though GM still has until month’s end to engineer concessions from debtholders and union workers, it seems the auto giant is nearly giving up hope.
It looks like March 31 might become “B”-Day for GM.
Click here for GM’s 2008 annual report.
