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→Auto crisis: update
[[Image:Auto$09.jpg|thumb|280px|US sales plunged 41% in Feb. 2009]]
[[Image:Auto$09.jpg|thumb|280px|US sales plunged 41% in Feb. 2009]]
In March 2009 GM reported that its auditors have raised substantial doubts about its ability to continue as a going concern, citing recurring losses from operations, stockholders' deficit and an inability to generate enough cash to meet its obligations. GM has received $13.4 billion in federal loans, and the company is seeking a total of $30 billion from the government. During the past three years it has run up $82 billion in losses, including $30.9 billion in 2008. Bankruptcy appears likely.<ref>Nick Bunkley, "Auditors Raise Doubts About G.M.’s Viability," [http://www.nytimes.com/2009/03/06/business/06auto.html?hp ''New York Times'' Mar. 5, 2009]</ref>
In March 2009 GM reported that its auditors have raised substantial doubts about its ability to continue as a going concern, citing recurring losses from operations, stockholders' deficit and an inability to generate enough cash to meet its obligations. GM has received $13.4 billion in federal loans, and the company is seeking a total of $30 billion from the government. During the past three years it has run up $82 billion in losses, including $30.9 billion in 2008. Bankruptcy appears likely.<ref>Nick Bunkley, "Auditors Raise Doubts About G.M.’s Viability," [http://www.nytimes.com/2009/03/06/business/06auto.html?hp ''New York Times'' Mar. 5, 2009]</ref> The Obama Administration has apparently decided that bankruptcy would be a mistake, and will try to keep the Big Three in operation.
Equally serious is the plight of the parts makers--who actually do most of the factory work that goes into cars. "The failure of a few key suppliers could have brought the entire industry to its knees," said the president of the Original Equipment Suppliers Association, where a third of the membership reported that it would face severe financial distress in the first quarter. The government is giving $5 billion in aid to this sector.<ref> Kendra Marr and Peter Whoriskey, "Auto Parts Makers Get $5 Billion Lifeline: U.S. Aid Boosts Hopes for the Entire Industry," [http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR2009031901597.html?hpid=topnews ''Washington Post'' Mar. 20, 2009]</ref>
===Bankruptcy scenario===
===Bankruptcy scenario===