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.