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Thursday, March 05, 2009

End of the Road for General Motors!

It’s a very sad news and just pray that it does not come true because if General Motors gets close down then surely it will become a shock not only just for the U.S. economy but for economies of many countries. Auditors if the company has raised serious doubt whether the company can survive in the long run and they’re not hopeful that the company can continue to operate for a long time.

 

CNN wrote:

General Motors Corp.'s (GM) auditors cast doubt Thursday on the auto maker's ability to survive without more U.S. government loans in a foreboding confirmation of its financial plight.

GM's continuing losses, negative net worth and an inability to generate cash for continued operations across its global operations led auditors to determine there is substantial doubt that it can remain a going concern.

The warning was contained in GM's delayed 10K filing with the Securities and Exchange Commission, and the statement forced GM to seek waivers from lenders.

 

If you think that the fish use of a rival companies like Toyota are now in a celebratory mood then you are wrong because Toyota is also suffering a lot. 

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