GM creates backup plan in case it doesn't get federal aid

The current financial woes of General Motors are no secret these days, with the Detroit 3 carmaker admitting recently that it will run out of cash early next year without the help of a federal loan. Despite the seriousness of the situation, as well as new polls that show the public is in favor of an automotive bailout, there still remains the distinct possibility that the government will reject these loan applications - in which case GM must be prepared with a backup plan to keep its head above water until President-elect Barack Obama enters the White House in January. Currently, GM is undertaking a number of measures to keep its cash flows at an acceptable rate, however with around $12.5 billion required at any time to keep the company operational these measures may have to be stepped up to avoid going bankrupt, reports Automotive News. GM has already declared that it won't be selling any more brand assets apart from Hummer, however this doesn't mean the company can't sell other physical or financial assets such as inefficient manufacturing plants and stakes in other companies.

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