GM looks for more bail-outs to stay afloat

GM has already had $13.4bn from the US government. But now it has asked for a extra £2.3bn to keep its European operations going.

"European governments find themselves in the same catch-22 as Washington," said Lex in the FT. With GM looking for a handout to keep its European operations running, they can either refuse and "suffer the brutal consequences" as 50,000 join the dole queues, or pay out and waste a mountain of taxpayers' cash.

GM has already had $13.4bn in aid from the US government. And now it has asked for a £2.3bn bailout, claiming its European arm made up of Germany's Opel, UK's Vauxhall and Sweden's Saab will be bankrupt within a matter of weeks. It's clear we're in an automotive depression, S&P analyst Efraim Levy told Bloomberg. American new vehicle sales plumbed fresh lows in February; GM's sales were 53% down year-on-year. Even cash-rich Toyota has had to turn to the Japanese government, said Alan Ohnsman on Bloomberg.

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