Yesterday we ran down the maths pointing to long odds on GM actually achieving a positive net present value anytime soon. Even with the friendliest assumptions, it still looks as though they’ll need to renegotiate their deal with the Obama administration in order to survive.
At the Detroit Auto Show, GM CEO Rick Wagoner confirmed that despite the billions it’s receive, nothing is certain for the company:
WSJ: General Motors Corp. appears to be off to a slow start to meet the mandates of a federal bailout, and its top executive said Monday the company hasn’t ruled out a bankruptcy filing.
Speaking at the North American International Auto Show in Detroit, Rick Wagoner, GM’s chairman and chief executive, said the company wants to avoid a Chapter 11 filing, but also said its viability is “not 100%” certain at this point.
Meanwhile, Ron Gettelfiner doesn’t exactly sound like a man in a hurry:
Although the UAW has said it is ready to negotiate, UAW President Ron Gettelfinger said Monday it is unclear what kind of reductions it will have to agree to. The Treasury Department has said GM must have a plan by March to become “viable” and have “positive net value.”
“We are still trying to figure out what that means,” Mr. Gettelfinger said in an interview. He added the union has heard little from the Treasury on what is expected. “We have no documents, no contact with the federal government,” he said.
Can anyone see a path that doesn’t involve bailout after bailout?
Why GM Is Still Screwed