GM Living Hand-to-Mouth; May Need Another $5 Billion

General Motors Corp. (GM) recently indicated that it may need another $5 billion to cover cash needs before its June 1 deadline for a proposed restructuring. If the restructuring is not completed by June 1, which will include substantial cuts from the Unions and bondholders, the company will file Chapter 11.

Brands will be whittled down (right now Chevrolet, Cadillac, GMC and Buick are profitable). The current thinking is to take Pontiac down to 1-2 models. GMC may be shed or sold, although this is a profitable division for GM. Saturn may be sold to Black Oak Partners, a private equity firm.

Bidders have approached GM about AC Delco, but GM has rebuffed those offers as it is a profitable group in the company. The future of Saab is in doubt. Stay tuned — plans may change even more in the future.

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