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Old 07-15-2008, 09:27 AM   #10 (permalink)
T-Type
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Re: GM to Bolster Liquidity by $15 Billion through 2009

Quote:
Originally Posted by K Dawg ONE View Post
I dont really understand the jist of this...basically, GM is gonna sell some things ('Trim some fat') and borrow some money so that they have an operating budget of about $15BILLION FOR 2009? Thats basically what Rick is saying, correct?
Basically GM's problem right now is that it will be about two more years before the renegotiated union contract kicks in - along with the Billions of savings that it will provide. Because the US economy has gotten so bad, so fast it was looking like GM wouldn't make it until then. GM had to raise more money/cut spending to make sure the business survives until then.
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