GM needs to raise about $9 billion within the next 2 years

According to Lehman Brothers, GM needs to raise about $9 billion within the next to years to refinance its debut meaning the company may seek more operational cash as it faces an increase in commodity price.

Analyst Brian Johnson said GM will need to refinance close to $8.7 billion of debut between now and 2010.

“Last week, Fitch Ratings said both GM and Ford will continue to face heavy cash drains in 2008 and are likely to burn cash through 2009 unless industry sales rebound.

GM has lost a total of $51 billion over the past 3 years said Johnson. The automaker needs to seek additional liquidity if U.S. market does not materially rebound by the second half of 2008.

Source: Automotive News (Subscription Required)

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