… the long dance between the American car makers and the state that bailed them out (and will likely bail them out again… and again). Megan McArdle has the news:
In a presentation to analysts Thursday, GM executives said it is now planning on total vehicle sales of 10.5 million cars and trucks in the U.S. this year. That’s down from an earlier forecast of 12 million vehicles that GM gave to Congress in early December when it first sought federal assistance to keep it out of bankruptcy.
GM President Fritz Henderson said that volatility makes any forecast for sales very difficult, and it is for that reason the company is now using more conservative estimates for sales.
The lowered outlook is important because it could be a sign that GM believes it will need more money in order to make it through this downturn. When GM submitted its turnaround plan to Congress last month, the company said that sales of 10.5 million vehicles in 2009 was a “downside scenario.”