Unless Barack Obama able to convince George w

"Place themselves under the protection of the scheme of bankruptcy is not an option for General Motors", stated the number an American of the automobile on its site, on 21 October, in the section "myths and realities". Three weeks later, the "myth" could become reality. The course of GM comes from down about 36 in two days, falling below 3 $, a Deutsche Bank note that has brought back its objective of course 0 dollar. Despite the promise of Barack Obama to do everything to save a crucial sector for the US industry, the Builder of Detroit himself has made clear that at the rate things are going, it would run out of cash at the end of the year. The survival of GM cannot wait the decision-making functions of the next President, January 20, 2009, says its CEO, Rick Wagoner, in an interview with the daily "Automotive News". A genuine call for help.

"Even if GM succeeds in avoiding bankruptcy, we believe that its future course is likely to be like," said Deutsche Bank analyst, Rod Lache, in its note. After having announced Friday, a new quarterly net loss of 4.2 billion (excluding exceptional items), GM has himself made knowledge Monday in a communication to the Constable of the American Stock Exchange (KSE) that his first provider of components, Delphi, is likely to be put into liquidation. According to the American manufacturer, Delphi, who placed themselves under the authority of Chapter 11 in October 2005, "is unlikely to emerge from bankruptcy in the short term and could not get out at all." In addition, GM indicated that ResCap mortgage company, controlled by its former subsidiary of GMAC financial services (which the group still holds 49), is also threatened with termination of activities, in view of its capital requirements.

Step of recovery in the short term

"The only chance of survival of General Motors is a direct injection of capital by the Government," said analyst Joseph Amaturo of Buckingham Research, after having revised downward its objective of course $ 3 to $ 1, as Barclays and Credit Switzerland. But most analysts, even a Government bailout plan will not help to upgrade the GM action. To enable it to stay afloat, the Federal Government should inject at least 10 billion dollars in GM and up to 25 billion to implement a restructuring. The admission of the constructor, the pace where it "Burns" its available cash (14 billion over nine months) and the absence of any hope of recovery of the market in the short term, without government assistance, there would more resources continued its activity.

"Based on our cash requirements by January 31, 2009, we do not believe that our activity will generate a sufficient cash flow for our obligations and we have no other traditional sources of cash", recognizes the constructor. It is a change of your significant. In addition, General Motors believes that the concessional lending of $ 25 billion already appropriated by Congress for vehicle manufacturers, in September, may not be "adequate" or "distributed in time" so that it can benefit in the short term.

Intense lobbying

With the worsening of the situation, General Motors has asked dealers to petition the Congress to get $ 25 billion emergency assistance which he claims with Ford and Chrysler. He even issued a letter type to this effect on its Internet site. Several democratic representatives have engaged the Secretary of the Treasury, Henry Paulson, to make available to the three major manufacturers (GM, Ford and Chrysler) Detroit a portion of the funds available in the Wall Street of $ 700 billion rescue plan. But, without excluding the hypothesis of emergency aid to the "Big Three", the Bush remains reluctant to use of this "window" without prior consultation with the Congress. Despite his intense lobbying, the fate of GM is still suspended in a special session. Unless Barack Obama able to convince George w. Bush to unblock emergency assistance without waiting for Congress.