Lehman Says General Motors (GM) Needs More Capital

According Lehman Brothers, General Motors (NYSE: GM) may need $7.3 billion in new capital to fund itself through 2009. Lehman said GM may burn through $6.9 billion in the 2nd-half of 2008 and another $4.4 billion next year. If the slowdown is worse, GM could need more.

Lehman said Ford (NYSE: F) is in a better liquidity position and can fund itself through 2010 without the need for more capital.

Shares of GM closed at $9.95 yesterday, down 60% on the year. Ford closed at $4.72 yesterday, down 30% on the year.

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