GM delays payments to dealers to conserve cash

**Steve** · 11-17-2008, 05:40 PM

Cash-strapped General Motors Corp. said Monday it will delay reimbursing its dealers for rebates and other sales incentives, an indication of the company's cash-flow problems.

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DETROIT - Cash-strapped General Motors Corp. said Monday it will delay reimbursing its dealers for rebates and other sales incentives, an indication that the company is starting to have cash-flow problems.
Company spokesman John McDonald said payments due Nov. 28 will be delayed for two weeks until Dec. 11, while those due Dec. 4 will be paid Dec. 18. The normal weekly schedule will resume after that. He would not say how much money the company will save from the delays.

GM said Nov. 7 that its cash situation was so dire that it may reach the minimum required to run the company by the end of the year. Executives from GM and its Detroit-area counterparts are scheduled to appear at congressional hearings this week to seek $25 billion in loans from the federal government.

**retired** · 11-17-2008, 06:28 PM

I'm having cash flow problems can I delay my payments.

**EagleTalons** · 11-18-2008, 10:27 PM

Only if you own a large company you can do anything!

**Steve** · 11-19-2008, 12:28 PM

I'm not sure what to think about this. It's not traditional capatialism, that's for sure.

The good argument against it? Why only them and who's next?

The good argument for it? They could collapse causing wave after wave of problem throuout hundreds of companies and industries.

**tlperry68** · 11-19-2008, 01:22 PM

I wish ethics was taught in business classes.

**Steve** · 11-19-2008, 02:30 PM

Originally Posted by tlperry68

I wish ethics was taught in business classes.

I think it's fair to say that the chief cause (there are many) is the ramp-up in gas prices, that shortened a lot of people's pocket books, who were overspent and living beyond their means anyhow, which lead to folks not paying for their credit (house mostly) which lead to a glut in the housing market, no new building, money not changing hands, slowdown in spending, slowdown in manufacturing, folks not buying stuff including cars. So they have a ton of cars that aren't being sold .... they're gonna lose a ton of money.

You keep the speculators from inflating the cost of gasoline, make people put more money down on the house they're moving into, stop selling houses to people who simply can't afford as much house as they're told they can buy (all their available money in any given month) ... get people out working again ... we can turn this thing around.