GM Loses Another $6 billion

GM's financial woes continue as the automaker reported a $6 billion loss during the first three months of the year Thursday. The Wall Street Journal reports that "GM burned through $10.2 billion in the quarter as revenue plunged nearly 50%. As recently as a February 17 filing to the government, GM was projecting that it would burn through only $4.1 billion in cash in the period. This is just another sign GM is running out of options as it races to meet a June 1 restructuring deadline set by the Obama administration. The company is surviving on $15.4 billion in federal loans and has said it needs another $11.6 billion to stay afloat. The losses aren't expected to let up soon. GM will idle most its assembly plants this summer, further slashing revenue. The auto maker's revenue fell by $20 billion, or 47%, as sales fell around the world."

"GM Chief Executive Fritz Henderson, while hoping to avoid a bankruptcy filing, has acknowledged the scenario is increasingly likely. The company needs 90% of bondholders to sign off on a deal to exchange $27 billion in debt for 10% of the company's stock. The union also must agree to accept equity in exchange for at least half of the $20 billion GM owes into a retiree health-care trust."

Please let's just euthanize it. We, the American taxpayers, have already given GM $15.4 billion. I definitely believe that American taxpayers do not want to invest another $11.6 billion into this "black hole." Like Chrysler, billions were provided that just delayed the inevitable, bankruptcy. It looks like we are using this same model for GM. Pump billions of taxpayer dollars into GM, which it does not stand a chance to survive. In other words, just more money down the proverbial rat hole.

Let's look at some sobering statistics, especially if you are not a GM worker, that assumes GM will receive the additional $11.6 billion dollars. With these additional billions, the American taxpayers will have provided $27 billion to GM. GM currently has a workforce of approximately 50,000. This amounts to a staggering $540,000 for each GM worker! If we look at GM's legacy side, (approximately 432,000 retired persons and their spouses), this amounts to $62,500 for each one. I guess paying all those union dues are worth it after all. However, it should not be at the expense of the American taxpayers.