GM – “time is very short”

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Earlier this week, the blog noted GM’s dire October performance, with its US sales down 45% on last year, following the ending of its price promotions. Now, Roger Altman, the former US Treasury official who is advising GM on its loan application, has told Bloomberg “time is very short” to avoid its collapse.

Normally it would take the US Energy Dept over a year to draw up rules for such a loan. This time, they expect to complete in 30 days. And today, a meeting with Speaker Nancy Pelosi is taking place, to try and finalise the application. This urgency tells its own story about GM’s financial state. GM’s suppliers in the US chemical industry will be hoping it comes through this crisis successfully.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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