GM announced today that CEO Rick Wagoner will hold a news conference tomorrow to discuss "actions it will take to align the business to current market conditions." GM is expected to announced a wide-range of cost-cutting plans according to sources familiar with the company’s plan.
Of course we expect Wagoner to talk about more plant closings, more production shifts to cars from large-SUVs and pickups and its stocks historic low. GM’s stock fell 5.4 percent on Monday – closing at $9.38 a share. That’s the lowest its been in 50 years.
Sales are down 16.3 percent for the first half of 2008. Analysts say that GM is currently burning cash at a monthly rate of $1 billion and $5 billion. In April Gm said it had $24 billion in cash on hand and $7 billion line of credit.
Source: Detroit News