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Fallout: The Financial Crisis

GM to Washington: More money, please

Marketplace Staff Feb 26, 2009
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Fallout: The Financial Crisis

GM to Washington: More money, please

Marketplace Staff Feb 26, 2009
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TEXT OF STORY

Steve Chiotakis: General Motors is just one big cash-guzzler. It reported this morning that last quarter, it lost nearly $10 billion and blew through another $6 billion more. That means the automaker will have to go back to the federal trough looking for help. It’s the latest blow for a company that just can’t seem to get any traction. Here’s Marketplace’s Jennifer Collins.


Jennifer Collins: For all of last year, General Motors lost $30.9 billion.

Ray Wert: It’s a huge number.

That’s Ray Wert, editor-in-chief of the auto blog Jalopnik.com:

Wert: To say that it was unexpected would be fallacious. Anyone needs just take a look at the auto sales market and you can see that $30.9 billion is about right.

But the market’s showing no signs of restarting anytime soon, and GM’s well on its way to blowing through a $13 billion loan it took from the government last year. So today, its executives will be back in Washington with a rather simple pitch:

Wert: Please give us more money.

GM has asked for $30 billion in total aid, and the U.S. has until the end of next month to decide if it’ll ante up.

I’m Jennifer Collins for Marketplace.

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