AFSCME 3357-HOF'S BLOG

The Latest on GM's Cash Flow
$21 Billion - $21 billion = 0

Ray Wert from www.thetruthaboutcars.com writes about GM's cash flow woes. Here's how he assesses GM's cash situation after its quarterly statement from the first quarter of 2006:

Still, that leaves GM $21b and change to work with, right? Subtract $8b in operating expenses for the revolving fund (so they can continue to build cars), deduct $5.5 to $10b for the Delphi thing, remove $2b to $3b for debt payments (which look to be spiraling upwards after the Fed Reserve Board announced the up-tick in rates this week), take away $3b for the early retirements package, leave off the $3b - $4b in overseas funds (which GM canÂ?t bring over without tax repercussions) and youÂ?ve got just enough money to pay forÂ? wellÂ? nothing.

You know it's bad when they start serving ricochet biscuits in the company cafeteria.



GM's Cash Problem