General Motors has been crying “The sky is falling!” for some weeks now, but it doesn’t appear that anyone in Washington is taking the General seriously. Unfortunately for GM, it is in very serious trouble, with its cash set to run out by early next year. Because of the serious nature of its situation, GM has now asked its dealers to lobby Washington on its behalf.
According to a letter obtained by Reuters, GM sales head Mark LaNeve asked GM dealers to contact their local government officials in order to move along a $50 billion aid package for the auto industry. “As we’re in the midst of the deepest crisis our industry has ever faced, GM’s priority is on seeking support from various U.S. government agencies and congressional leaders,” LaNeve said in the letter.
Chief executives from the Big Three met with Congressional leaders last week, but nothing has yet materialized from that meeting. GM is hopeful that the support of its dealers will move things along, but time is quickly running out.
The Bush administration will decide whether to move forward with an immediate auto industry relief package next week, but it remains unclear how the administration will rule. If Congress and the Bush administration pass on the aid package, GM – along with the rest of the Big Three – might not make it until President elect Barack Obama takes office.
