November 8th, 2008 at 9:37am
Anyone watching the auto industry these days is acutely aware that General Motors is hurtling towards disaster. It’s burning through cash reserves at a rate that will put it in Chapter 11 sometime next year, no matter how much management says “that’s not an option.” It’s still being crushed by its legacy costs, yes, even after concessions from the UAW. And it just witnessed its own finance arm, GMAC, essentially pull out of the automotive lending business.
What was an emergency just a month ago has now blossomed into a full blown crisis. Unless something is done quickly, General Motors could collapse.