GM Deathwatch?

The equivalent of watching a mortally wounded person going into shock:

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

Company spokesman John McDonald said payments due Nov. 28 will be delayed for two weeks 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 from the delays.

We know that GM is strapped for cash, but it's hard for me to discern to what extent is this an actual cash-savings measures or if it is merely posturing. There is no doubt that companies like GM, who are not financially hale to begin with, was going to be hit hard by the collapse of the capital market.

On the other hand, since GM does have some solid operations (particularly overseas), a Chapter 11 re-org might not be altogether a bad idea.

One other idea about the bailout I rather like is for the government to pay for the healthcare cost of autoworkers, that would improve GM's cashflow immediately, and mitigate the sorry state that is our healthcare system.

The car above is 2009 Saturn VUE hybrid, which is supposed to have a MPG of 25/32, making it the most fuel efficient car in its class (even if it does not have a AWD model). In comparison, 2009 CRV has an MPG of 21/24.

I would seriously get that with my severance money, assuming that GM is still around...