GM, Chrysler Beg for More.


The two automakers pleaded with the government to give them $7B in more federal money or they claim that they’ll file for bankruptcy within six weeks.

Six weeks.

The plan to use the federal money includes laying off 50, 000 employees. Overall, it could be just delaying the inevitable as $7B seems like cash that they can burn through pretty easy. It’s like giving your kid an upgrade in allowance. Now that you’ve moved him up from five dollars a week to ten dollars, do you think he’ll say, “no, Dad, don’t worry! I’ll just take ten dollars for six weeks, and then I’ll go back to five dollars. I swear.”

Yeah. Okay. No.

Instead, I see GM and Chrysler burning through this cash swiftly and then filing for bankruptcy protection in months instead of weeks.

It’s a sad time to be in Detroit. But maybe not as sad as buying a GM or a Chrysler car. Have you seen any of them? Just awful.