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GM has about $100B in debt https://www.benzinga.com/news/20/09/17407586/a-look-into-general-motorss-debt#/:~:text=General%20Motors's%20Debt%20According%20to%20t
by pokerhobo 6y ago
GM has about $100B in debt https://www.benzinga.com/news/20/09/17407586/a-look-into-general-motorss-debt#/:~:text=General%20Motors's%20Debt%20According%20to%20the%20General%20Motors’s,company%20has%20a%20net%20debt%20of%20$98.94%20billion https://www.benzinga.com/news/20/09/17407586/a-look-into-gen.... Help me understand how I’m misinterpreting this.
- pmorici 6y agoHe probably means that a lot of that debt is related to loans and leasing.
- nickik 6y agoPeople make the argument that this is not a bad thing because these loans are backed. In my opinion this is crazy. With EV at an inflection point, the value of used ICE cars will totally collapse and newly produced ICE cars will lose massive amounts of value as well. The whole structure of how GM does business will make no sense in the future. Why anybody would invest in a GM when there are amazing plays in the battery industry that is growing 50-100% every year is beyond me.
- friedman23 6y agoAlmost all of the debt is in GM Financial which is a subsidiary. If GM Financial debt goes bad GM can just shutter the company. Also the debt is from leases, people right now during the pandemic are prioritizing paying their leases over the home loans and rent.