Analyst: GM Needs $9B in New Financing

[RobRich]

Lehman Brothers analyst Brian Johnson says General Motors will need to secure over $9 billion in financing within two years to refinance existing debt and offset ongoing losses.

"GM will need to refinance close to $8.7 billion of debt coming due between now and January 2010, as well as absorb additional cash burn of close to $11 billion," Johnson said in a note for clients.

He added: "We remain cautious until the impact of this more fully works its way into GM valuation."

Source: Yahoo! News (Reuters)

[jokostel]

let's try this on for size...
make vehicles that ARE 45+MPG across the board... from cars to trucks.
bring out the hydrogen cell cars..
oh yeah, they can lessen the cost of a damn car.... for crying out loud, for 3 new cars in this area.... you can buy a HOUSE.

Maybe then, the business will start coming around.

[zen]

Originally Posted by jokostel

let's try this on for size...
make vehicles that ARE 45+MPG across the board... from cars to trucks.
bring out the hydrogen cell cars..
oh yeah, they can lessen the cost of a damn car.... for crying out loud, for 3 new cars in this area.... you can buy a HOUSE.

Maybe then, the business will start coming around.

You just put them in bankruptcy.

[jokostel]

Tough.
That's what you get for overpricing items.

[zen]

Or do they need those high prices to pay the outrageous wages union workers are making? Ever see what a UAW drives? Lexus!

[jokostel]

that and the 401k plans. Why should WE as comsumers have to pay for internal management fuckups? Take it out of their salaries.

[zen]

So you see why a pick-up costs $30,000?

[jokostel]

Originally Posted by zen

So you see why a pick-up costs $30,000?

Yeah, I see why.
But with the vehicle sales lately... I think that THEY are finally starting to see that THEY need to change, or they are going to go tits up.

People are not in the mood to get overcharged left and right anymore.
Especially with the cost of everything going thru the roof.
There is only SO much money that is to be had.


He who has the BEST products at the lowest cost wins.

[zen]

Originally Posted by jokostel

Yeah, I see why.
But with the vehicle sales lately... I think that THEY are finally starting to see that THEY need to change, or they are going to go tits up.

People are not in the mood to get overcharged left and right anymore.
Especially with the cost of everything going thru the roof.
There is only SO much money that is to be had.


He who has the BEST products at the lowest cost wins.

I know, yet all I see on the freeway are brand new vehicles. People are getting ass raped for new SUV's but you see no shortage of them around. Me, I'm gettin a new civic.

[jokostel]

I can put a LOT of parts into the truck I have before it's not cost efficent.


** Problem is, EVERYONE for the last few years has had that same thought.... guess what, there are no decent used cars in this state... they have waiting lists up the wazoo for anything decent.


The days of cheap repairables is gone.