Auto Knight

General Motors Future Uncertain

by Darren

General Motors is in big trouble and facing an uncertain future. The company has had a big problem selling vehicles and has amassed a mountain of debt in the process. After announcing a $30.9 billion loss last week, many experts are beginning to wonder if the beleaguered car company can survive.

“The corporation’s recurring losses from operations, stockholders’ deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern,” auditors for Deloitte & Touche wrote in the annual report.

General Motors has already received cash from the US government and have currently petitioned for $13 billion more dollars. But without a rebound in demand for new cars and without the improved health of the auto loan industry, it looks unlikely that they can be restored to profitability.

Right now more questions than answers exist concerning GM’s future.