Auditors express *substantial doubt* about GM's future

GM is on the verge of demise despite the billions the troubled Detroit automaker has received in federal bailout loans.

According to GM's own auditors, there is "substantial doubt" about the viability of the company without more federal help. In a filing with the Securities and Exchange Commission, the company's auditing firm, Deloitte & Touche, 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."

GM is cash-starved and in need of more funds to continue to operate. In 2008, the company suffered a loss of 30.9 billion US dollars. It has asked the US government for an additional 16.6 billion US dollars on top of the 13.4 billion it has received so far.

And GM isn't only asking for help in the United States. It has also received a bailout loan for operations in Canada and has asked governments in Australia, Sweden, Germany and even Thailand to help fund its operations in those countries.

In Germany, GM subsidiary Opel is looking for funding from the German government as the automaker's operations and corporate structure are too integrated into GM in order for the company to be easily sold-off or spun-off on its own. It is also entirely dependent on GM for funding. GM Europe has said it needs 3.3 billion euros ($4.15 billion US dollars) in order to continue operating and expects the bulk of that funding to come from the German government where most of Opel's operations are based.

It is not known how much funding Opel would need to be spun-off on its own in the event of a GM bankruptcy.

Press Release

GM Statement Regarding Auditor's 'Going Concern' Opinion Included in the Company's 2008 10-K Filing

Auditors are required to assess whether there is substantial doubt about an entity's ability to continue as a going concern over the next year. Given GM's public statements on our liquidity position dating back to the end of 2008 and more fully disclosed in our February 17 viability plan submission, the opinion rendered in our 10-K was not unexpected.

That opinion is dependent on a number of factors including our ability to execute our viability plan, compliance with our U.S. Treasury loans, volume recovery of the industry, and access to additional funding from the U.S. and certain other governments. Once global automotive sales recover and GM's restructuring actions generate the anticipated savings and benefits, the company is expected to again be able to fund its own operating requirements.

The auditor's opinion has no impact on the aggressive actions we are taking to restructure our business for long-term viability.