Is GM a "Going Concern"? Wait and See

Hasan Shaikh
By Hasan Shaikh

In reporting a near-record 2008 loss, the automaker says auditor Deloitte is expected to raise the question in its opinion. General Motors warned that it anticipates receiving a "going concern" opinion from its auditors, underscoring in yet another way the depth of the embattled automaker's financial problems.

GM said the company and its auditor, which is Deloitte & Touche, "must determine whether there is substantial doubt about GM's ability to continue as a going concern."

Against this backdrop, the company noted its viability plan, filed with the Treasury Department on Feb. 17, included a request for additional funding from Treasury, as well as support from other governments outside of the U.S. "GM requires this funding in 2009 to continue operations until global automotive sales recover and its restructuring actions generate benefits, resulting in the company being able to fund its own operating requirements," the company said.

By anonymous• 27 Feb 2009 15:14
Rating: 2/5
anonymous

It's not the Product line which is making GM a Failure, but their expenses paying The Retired Workers. And because of this Bankruptcy is the only solution for them

By anonymous• 27 Feb 2009 15:03
anonymous

Opel in Germany (GM daughter) is currently discussing to split from GM.

By britexpat• 27 Feb 2009 14:52
Rating: 5/5
britexpat

No, I don't.. However, both GM and Ford ned to restructure and rationalise their product lines.. They shouldn't depend on the tax payer for bailing them out..

By anonymous• 27 Feb 2009 14:45
anonymous

That will be the end for Corvettes and small blocks. Do you really want that, brit?

By Hasan Shaikh• 27 Feb 2009 12:51
Rating: 3/5
Hasan Shaikh

Yeah they should be. But, the cost of letting them go down the drain is much higher than the cost of saving them. Also, they shall take along with them all their major suppliers.

By britexpat• 27 Feb 2009 12:49
Rating: 5/5
britexpat

The failure of the capitalist system is evident.. GM and others like it should be allowed to go down the tubes..

Time for a new era..

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