One of the reasons I'm buying a Ford is because I knew this was coming.
I studied GM's fincial statements as part of an accounting project pretty closly last fall with some pretty smart accounting students. Having seen there horrible sales figures, and amazing cash burn we saw that Bush's bailout money would run out in March, and they would need more or go under. Well guess what? Our accounting project on GM was dead nuts on.
As I have said before GM is no longer a viable company, they have only 3 options, well 2 and an out...
1. Bankruptcy and restructure.
2. The economy comes back strong and people start buying SUV's like mad again.
3. The government buys them out and they become a state run company.
Remember GM has a $2.5B per month burn rate, they can reduce that and are trying to, but thats not something you can do overnight. They are in a tight spot now because they have no cash, and no credit.