GM takes another $4 billion
05-26-2009, 06:01 AM
#1
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Join Date: Feb 2007
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GM takes another $4 billion
General Motors Corp. borrowed $4 billion in additional federal aid Friday, which is $1.4 billion more than originally requested, to avoid running out of money, the automaker said late today in a regulatory filing.
That brings GM’s total borrowing to $19.4 billion.
Until today, the automaker had received $15.4 billion, but last month signaled it would need $11.6 billion more to survive until the end of the year including $2.6 billion before June 1.
But the $2.6 billion payment was not enough to cover bills, GM said late today. It needed the $4 billion now and the balance of the $11.6 billion later this year.
“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,” GM said in a prepared statement. “We will continue to work closely with members of the President’s Auto Task Force throughout our restructuring and together we will continue to monitor our liquidity needs during this period.”
GM faces a June 1 deadline to restructure the company and reach concessions with the United Auto Workers and bondholders or be forced into a Chapter 11 bankruptcy filing.
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That brings GM’s total borrowing to $19.4 billion.
Until today, the automaker had received $15.4 billion, but last month signaled it would need $11.6 billion more to survive until the end of the year including $2.6 billion before June 1.
But the $2.6 billion payment was not enough to cover bills, GM said late today. It needed the $4 billion now and the balance of the $11.6 billion later this year.
“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,” GM said in a prepared statement. “We will continue to work closely with members of the President’s Auto Task Force throughout our restructuring and together we will continue to monitor our liquidity needs during this period.”
GM faces a June 1 deadline to restructure the company and reach concessions with the United Auto Workers and bondholders or be forced into a Chapter 11 bankruptcy filing.
More...
05-29-2009, 05:57 PM
#4
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Join Date: May 2009
Location: UT, USA
Posts: 78
well... if nothing else... U.S. automakers kinda brought it on themselves...
sucks to lose one, but at the same time, this kind of time is good for new things to start popping out.
i mean look at hyundai. they started popping out some improved stuff and now they are one of the few companies that have been selling more cars this year than last.
I like a lot of what GM stands for and would've rather seen Ford go (Avid Ford hater here) than GM, but I would've rather seen Chrysler die than either of Ford or GM.
but the good thing about Chrysler not dying is their deals with Fiat, that will hopefully get us some awesome European cars in the states within a few short years.
sucks to lose one, but at the same time, this kind of time is good for new things to start popping out.
i mean look at hyundai. they started popping out some improved stuff and now they are one of the few companies that have been selling more cars this year than last.
I like a lot of what GM stands for and would've rather seen Ford go (Avid Ford hater here) than GM, but I would've rather seen Chrysler die than either of Ford or GM.
but the good thing about Chrysler not dying is their deals with Fiat, that will hopefully get us some awesome European cars in the states within a few short years.
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