It must suck to be GM. Ha ha, you already knew that. GM’s auditor, Deloitte & Touche, isn’t so sure the company can, you know, survive even after receiving all that bailout money and dumping Saab and betting it all on black on a recent trip to Atlantic City:
General Motors Corp.’s auditor said formally Thursday that there is substantial doubt the struggling auto maker can remain a going concern, putting an official stamp on the company’s dire condition and forcing GM to seek waivers from lenders.
The comments came in GM’s delayed annual report filed with the Securities and Exchange Commission. Auditor Deloitte & Touche cited GM’s continuing losses from operations, its negative net worth and an inability to generate the cash needed to run its business.
Now, don’t mistake me for a CPA with training and years of experience in auditing, but nothing about the phrases “continuing losses,” “negative net worth,” or “inability to generate cash” fill me with hope or confidence that GM can continue to exist.
Cesar Cardoso // Mar 5, 2009 at 9:53 am
GM can still sell Opel, Vauxhall, Holden etc etc etc and get some money to burn for… maybe one month?
TonyS // Mar 5, 2009 at 9:59 am
So, am I correct that we just spent an amount of money with 10 zeroes after it to give them an extra two months to live? That leaves me with a feeling of… no, “anger” doesn’t quite do it. “The furious burning rage of a thousand suns.” comes a little closer… I think we may need to invent a new word for this.
Jason // Mar 5, 2009 at 10:00 am
Tony, if you can even feel anything anymore, you’re doing a lot better than I am.
TonyS // Mar 5, 2009 at 10:31 am
I think what keeps me on the positive is the fact that decent people are actually in the majority… the problem is, indecent people are really good at making us feel alone.
That’s one reason why the right to peacably assemble is so important in a democracy and why dictatorships are terrified of it.
LoLo,ESQ // Mar 5, 2009 at 11:28 am
A Going Concern Notice is a pretty big deal. A company can be crappy and never get one because accounting agencies can be sued for malpractice if they hand that shit out like candy. It pretty much means WARNING WARNING FAIL FAIL FAIL
Jason // Mar 5, 2009 at 11:31 am
You know what else means WARNING WARNING FAIL FAIL FAIL?
GM.
'mouse // Mar 5, 2009 at 11:59 am
Honestly, without LOLFed to remind me to laugh about this stuff I’m pretty sure I’d be so deep in depression by now that… well, it’d be ugly. Thanks, y’all.
Fartles // Mar 6, 2009 at 8:31 am
A shame, too, really, after Cadillac’s renaissance the past few years. Seeing the flagship marque making a comeback really was a bright spot for Americana. Its success managed get thru my patina of cynicism anyway. It would be interesting to see how the different GM marques would be parcelled out and sold under liquidation. I would assume Caddy could almost be strong enough on its own, maybe even better for it. Cadillac is intensely popular (along with Buick funnily enough) in China.