DOW JONES NEWSWIRES
Struggling Detroit auto maker General Motors Corp. (GM)
confirmed Friday evening that it will draw another $2 billion loan
from the Treasury Department "to maintain adequate liquidity as the
company undergoes an aggressive restructuring."
The loan means GM has received a total of $15.4 billion in
government funds.
"We appreciate President Obama's and his administration's
ongoing support of GM and the domestic U.S. auto industry as we
undertake the difficult but necessary actions to reinvent our
company," the company said. "We will continue to work closely with
members of the President's Auto Task Force throughout our
reinvention and together we will continue to monitor our liquidity
needs during this period."
Earlier Friday, Treasury Secretary Timothy Geithner cited
progress in talks to save U.S. auto makers but said there is more
to be done.
GM faces a June 1 deadline for restructuring and establishing a
plan for its viability, while the government gave Chrysler LLC
until the end of this month to strike a deal with Italian auto
maker Fiat SpA (F.MI). The Obama administration is widely reported
to be moving toward Chapter 11 bankruptcy protection for
Chrysler.
GM's shares rose 1.8% to $1.72 in after-hours trading.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com