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Last updated on Friday, November 7, 2008
(DETROIT) - General Motors is in dire straits, and is currently on track to be broke by the end of the current quarter.
In a press release issued late this morning to investors, General Motors reported having burned a $6.9 billion hole in their pocket, and "will approach the minimum amount [of cash] necessary to operate its business" in this quarter.
The company says that only a significant turnaround in both economic conditions and conditions within the automotive industry will keep GM from falling "significantly short" of the amount of money they need to keep the doors open. Dave Cole, chairman of Michigan think-tank the Center for Automotive Research, told CNNMoney.com that the issue of GM's cash shortfalls need to be addressed literally within the next couple weeks, rather than next year or some other distant time point.
As a stop gap, the company is planning on reducing spending for 2009 by $2.4 billion, including development programs for future vehicles, however, GM says that won't be enough to keep its head above water.
Another move will be canceling talks about merging with Chrysler, in order to focus on the company's financial problems.
Additionally, CEOs of GM, Ford and Chrysler met with Congressional leaders this week to discuss a bailout of the automotive industry.
General Motors has manufacturing facilities in Indianapolis, Marion, Ft. Wayne and, of course, Bedford.
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