Speaking with CNBC's Phil LeBeau, who has spent today talking to more distressed people than Dr. Phil, GM CEO Rick Wagoner outlined how grim the news is for the troubled automaker, and mentioned the "domino effect" losing GM would have on the economy ( as an aside, the Michigan Economic Development Corporation (MEDC) claims 6.5 indirect jobs for each OEM job — whether that's supplier jobs or just the guy who runs the dry cleaners in the RenCen). The big concern is that GM will simply run out of the cash it needs to operate, which Wagoner said was between $11 and $14 billion. Though the company is currently losing $2.3 billion per month in cash, he thinks the company will lose something closer to the $1 billion a month it was losing in the first half the year and will try to offload assets. And bankruptcy?
There's nothing like power of denial. Though asked the question a couple different ways, Wagoner wouldn't take the bait, only saying "We've said this before: we have no plans whatsoever than to continue to run the business... you can't sell cars under that circumstance." Yes, as opposed to all of those cars you're selling now. Either way, the bottom line from GM continues to be that either a magical fairy fixes the economy quickly, or someone bails them out.
[Source: CNBC]
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