Saturday, November 8, 2008

GM seemingly in freefall, nearly bankrupt

The big news in the auto industry this week is the shocking revelation of General Motor's severe cash crunch. They are currently burning through $2.5 billion in cash EVERY month! These numbers are hard for me to fathom and it is no wonder that the company is near the breaking point. Recently, there were rumors of a merger between GM and Chrysler, apparently so that GM could get its hands on their cash. These merger talks have been suspended.

So why do we care if GM goes belly up? I think the main reason we want GM to survive is so that they can be FORCED to manufacture alternate fuel vehicles and high mpg vehicles. Unfortunately, it looks like the government will have to bail them out if they are to avoid bankruptcy. This aggravates me no end. I wish we could insist that all the upper management employees be fired as part of a bailout. Of course, no such thing will occur.

We need oil free cars to be an oil free country. We need successful auto makers in order to purchase the oil free cars, so get your act together GM!

No comments: