GM to delay dealer payments
Associated Press
Tuesday, November 18, 2008

DETROIT --- Cash-strapped General Motors Corp. said Monday that it will delay reimbursing its dealers for rebates and other sales incentives, an indication the company is starting to have cash-flow problems.

Company spokesman John McDonald said payments due Nov. 28 will be delayed 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.

GM said Nov. 7 that its cash situation was so dire it might reach the minimum required to run the company by the end of the year.

Van Conway, a mergers and acquisitions expert and partner with Birmingham, Mich.-based Conway & MacKenzie, said the delay is a sign the company knows it will run low on cash, and dealers might be most able to take the hit without hurting the company.

"They must have weekly projections here that show them bumping on their minimums," Mr. Conway said.

Parts suppliers, if not paid, might stop shipping parts to GM, he said.

"If you don't give the dealer an incentive, what's he going to do to you?" Mr. Conway asked.

SUZUKI FOR SALE TOKYO --- Cash-strapped General Motors Corp. will sell its entire stake in Suzuki Motor Corp. for $230 million, the automaker's latest move to stay afloat while awaiting a decision on government aid. Suzuki said Monday that it would buy back the 3.02 percent stake from the American auto giant. -- Associated Press

From the Tuesday, November 18, 2008 edition of the Augusta Chronicle
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