Living in the heart of Michigan, it's hard to escape the footprint of General Motors on our daily life.
That's why, this morning's story in the Detroit Free Press about GM and its supposed attempt to bring Chrysler into its fold is alarming.
Apparently Chrysler has a stack of cash on hand, some say $10 billion, that GM could use to stay in business. The car company needs it to stay in business and Chrysler would have to be shuttered to make the cash accessible.
About GM's need, the Free Press says:
GM, which lost $18.8 billion in the first half of the year and hasBarclays
been burning through at least $1 billion a month, is believed to have
enough cash to make it through the rest of 2008, but several analysts
worry the company will not have enough for 2009.
Capital analyst Brian Johnson, in a note to investors, said GM is about
$2 billion short of what it needs to make it through 2009 -- even with
help from the government and drawing down an additional $3.5 billion on
its credit line.
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