GM’s S.O.S.
General Motors Corp. reported third-quarter earnings today: a whopping $4.2 billion, or $7.35 per share, excluding special items. But the beleaguered auto manufacturer dropped a bombshell when it disclosed its cash position, which is dangerously low.
The company said its “estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business.”
To make matters worse, the company said that in the first half of next year its “estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve.”
GM burned through $6.9 billion of cash last quarter — that’s $75 million per day.
Though GM continues to slash jobs and spending, the outlook is grim. GM brass are actively lobbying the government and lawmakers for added funds to keep the company afloat. Only time will tell if their efforts will be successful.
