Troubled automaker GM says it will need another 16.6 billion US dollars in order to remain solvent. GM has already received 13.4 billion in bailout cash from the US Treasury.
There's no hiding the terrible news and what that may mean for GM - namely, that it's game over for the Detroit automaker.
GM lost over 30 billion US dollars in 2008.
That's 30.9 billion to be exact which makes the 13.4 billion the automaker has received in a federal bailout seem rather skimpy in comparison. GM claims it will need a further 16.6 billion in funds in order to stay solvent. But if one puts those two bailout figures together they come pretty close to that 31 billion lost in 2008. It doesn't look good politically for GM if they seem to be asking for taxpayer dollars to cover their colossal losses.
GM is attempting to restructure and must submit plans that show its long-term viability to the federal government by March 31st in order to qualify for any more money in the form of emergency, low-interest loans from the US Treasury.
GM has committed to eliminating or drastically shrinking four of its brands - Saab, Saturn, Hummer and Pontiac. The automaker also plans to cut 47,000 jobs in 2009 and shut 14 plants in the next 3 years.
Still, all that may not be enough. Sales are still dismal for GM brands and things don't look like they will be turning around any time soon. In a speech to Congress earlier this week, US President Barack Obama said that his administration would not protect automakers from their bad choices. Hinting heavily that there would not be an endless series of bailouts for GM.