GM Says It Doesn't Need $2 Billion In Aid To Get Through March
12 März 2009 - 5:08PM
Dow Jones News
General Motors Corp. (GM), which had said it needed $2 billion
to avoid running out of cash by the end of March, said Thursday it
can survive without the emergency loans.
A GM spokeswoman said Thursday GM still needs the money, just
not as quickly as anticipated. The auto maker did not specify when
it needs the money, which is part of an aid request made last month
for up to $16.6 billion in federal loans.
Cost-cutting moves and spending deferrals in January and
February improved GM's immediate cash position, allowing the
company to put off the aid request, the auto maker said in a
statement.
"GM has also indicated they have advised the Presidential Task
Force on The Auto Industry that the $2 billion of funding
previously requested for March would not be needed at this time,"
GM said in a statement. "This development reflects the acceleration
of GM's company-wide cost reduction efforts as well as pro-active
deferrals of spending previously anticipated in January and
February."
GM, struggling to avoid bankruptcy amid a global sales slump,
has been surviving on a $13.4 billion federal loan since December.
An automotive task force appointed by President Barack Obama faces
a March 31 deadline to decide whether to give GM additional
loans.
GM's ability to last without an immediate infusion relieves some
pressure on the task force to make a decisions. Key elements of
GM's restructuring plan - namely concessions from the United Auto
Workers and bondholders - remain unresolved as GM negotiated with
both groups.
-By Sharon Terlep, 248-204-5532; sharon.terlep@dowjones.com
(John Stoll and Jeff Bennett contributed to this story.)