AFSCME 3357-HOF'S BLOG

GM's CFO Says Cash Position is Better than Expected

In the wake of GM's $15.5 billion 2nd quarter loss, Chief Financial Officer Ray Young told the press that the company's cash situation was a little better than expected. According to Mr. Young, GM had a net cash loss of about $3.6 billion in the period, and the company currently sits on cash reserves of $21 billion with $5 billion in credit. I postulated in my last post that GM's cash burn could be 2-3 times the $1 billion per month that had been commonly reported. At $3.6 billion for the quarter, cash burn is still 20% higher than a billion a month. The other losses must have been absorbed in other balance sheet items such as declines in other current and long-term assets or increases in long-term liabilities.

source: Reuters