Analysts say GM may be short on cash

DETROIT, July 9 (UPI) -- Financial analysts are asking whether the largest U.S. automaker, General Motors Corp., has enough cash to see it through the industry's latest downturn.

As consumers flock to more fuel-efficient vehicles, General Motors has announced cuts in its workforce and plant closings, The New York Times reported Wednesday.

But, the consumer's rapid change from large to small vehicles may force GM into a slump that runs deeper than its cash reserves can handle, some auto industry analysts say.

"GM needs cash to finish the job," consultant John Casesa of Casesa Shapiro Group told the Times.

The company has $23.9 billion in cash reserves and a $7 billion line of credit, the Times reported.

Analysts estimate GM is losing $1 billion each month, meaning it would have enough cash to survive until the end of 2009.

Senior GM executives are not commenting on the company's finances until a plan of action is made public, GM spokesman Tony Cervone said.

Industry analyst, Himanshu Patel of J. P. Morgan Chase, said GM may need to borrow $10 billion.

But, Patel said GM has options. "GM is burning cash fast, but it still has many unencumbered assets that can be borrowed against," he said.