GM Warns It May Fail Without Billions More in Aid

Even after borrowing $13.4 billion from the federal government, auto giant General Motors revealed today in its annual report that the auto giant's viability is in "substantial doubt" unless it can secure more funds.

"Our recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern," auditors wrote in the filing.

Although this means that GM may have to file for bankruptcy unless it enacts an enormous restructuring plan, the company said that it has no immediate plans to apply for protection.

One lifeline that could stave off bankruptcy, GM said, is further aid—at least $9.1 billion more simply to survive. In total, GM is aiming for $30 billion in federal funds to dig itself out of the hole. It's also looking for up to an additional $6 billion from foreign governments, several of which GM has been courting. Canada, for one, has said it might provide assistance.

To be considered for more funding from the U.S. government, GM has until March 31 to prove that it can become viable again. If it can't, the government not only could refuse further loans to the company but has the right to request that GM immediately repay its outstanding loans.

Last year, GM lost $30.9 billion as vehicle sales dropped 40 percent in the United States since their 2007 peak. In efforts to stave off bankruptcy, the company has cut Saturn, Saab, and Hummer from its eight brands, slashed 10,000 jobs, and made plans to close 14 of 47 manufacturing plants in the next three years.

Today's report is a reminder, however, that if more drastic changes aren't made—or additional aid is provided—those efforts could be unsuccessful.