GM, Auditors Doubt Survival Unless Sales Pick Up Fast

Bankruptcy threatens if auto sales don't pick up
By Matt Cantor,  Newser User
Posted Mar 5, 2009 7:21 AM CST
Unsold 2009 models sit under a General Motors sign at a Chevrolet dealership in Englewood, Colo., on Sunday, Feb. 15, 2009.    (AP Photo/David Zalubowski)
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(Newser) – General Motors and its auditors expressed doubts about the automaker’s survival in an SEC filing today. Bankruptcy looms, the firm notes, if the viability plan it gave Congress fails, MarketWatch reports. That plan depends on vehicle sales recovering next year, as well as the company's ability to get financing for its debt. “There is no assurance that the global automobile market will recover or that it will not suffer a significant further downturn,” the firm said.

“The Corporation's recurring losses from operations, stockholders' deficit and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern,” auditors wrote.