General Motors Corp. (GM) has yet to receive $5.4 billion in low interest U.S. government loans slated to be released Friday, a delay the auto maker attributed to the complex application process.

GM still expects to receive the second installment of a $9.4 billion federal lifeline granted last year to save the auto maker from bankruptcy, spokeswoman Julie Gibson said. The company Friday was still working through the application for aid.

She said a short delay poses no threat to the company.

The Detroit-based auto maker, racking up billion-dollar losses amid slowing sales, needs the money to fund its continuing operations. GM received its first, $4 billion installment on Dec. 31 just before the company would have defaulted on billions of dollars in payments to suppliers.

GM and Chrysler LLC secured the loan guarantees last month after President George W. Bush gave the auto makers access to the $700 billion bank bailout passed by Congress last year. The companies must repay the loans in three years. They could be recalled by the government if the auto makers can't prove they're on their way to becoming viable by March 31.

Ford Motor Co. (F), based in Dearborn, Mich., has said it does not intend to use government money to fund operations, and has passed on the initial loans. The auto maker Friday reiterated its plan to avoid asking the government for money to fund its operations following news that its financing arm, Ford Credit, was in talks with government over financial assistance.

"We did not and are not seeking short-term financial assistance for our automotive operations from the government," the auto maker said in a statement Friday.

A slowdown in global automotive sales combined with locked-down credit markets have pushed GM and Chrysler to the breaking point. GM, Chrysler and Ford have cut workers and idled production plants in order to control costs.

-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com.

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