F&I Management & Training

There is "substantial doubt" about the ability of General Motors (GM) to stay afloat, the firm's auditors have said. Ongoing losses and the struggle to generate cashflow meant the firm's ability to continue as a going concern should be questioned, they added. Last week GM posted a $30.9bn (£21.9bn) loss for 2008 and warned that 2009 was set to be "challenging". The firm, which plans to cut 47,000 jobs also said it might need another $22.6bn in government loans to survive. It has already received $13.4bn in federal loans as it struggles in what analysts say is the worst vehicle sales market in 27 years. Step in "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. The auditors' remarks reflect comments already made by the firm about its dire difficulties. Earlier this week, GM's top executive warned the European divisions of General Motors (GM) could collapse within weeks without European governments' help - costing up to 300,000 jobs. Chief operating officer Fritz Henderson said governments should step in immediately to ensure GM Europe did not run out of money by April or May.

DATED: 06.03.09

FEED: AW