US: GM says US$2bn March funding 'not needed'
Author: just-auto.com editorial team | 13 March 2009
GM has said that it does not need US$2bn of funding for March that it had previously requested from the US government.
The company said in a statement that it had advised the Presidential Task Force on the auto industry that the US$2bn requested for March 'would not be needed at this time'.
It also said that '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 also said it will remain in regular contact with the Presidential Task Force on the status of GM's restructuring actions, its liquidity position, timing of future funding requests, and other relevant topics of mutual concern.
GM faces a March 31 deadline to demonstrate viability to the US government and is pushing for concessions from the UAW and bondholders to bolster its case.
Sectors: Financial, Vehicle manufacturers
Companies: GM
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There is currently 1 comment on this article
GM doesn't need $2 billion from the US Presidential task force in March. But it needs twice that, Euro 3.3 billion, by the end of March to keep a wholly owned subsidiary, GM of Europe / Opel solvent. A month ago, GM was forced to consider selling equity in Opel to get European govenment support. Today, this appears to be a preferred solution. And while all of this zigging and zagging unfolds before the global financial press, GM announces that Opel (whoever owns it) will become the new design source for Buick, since Saturn will be systematically starved of new product, even though its dealer network is arguably GM's best performing. WTF?
Some basic rules of crisis management: Give the press facts to report, not musings to speculate about. Don't rehash the options, formulate the solution and tell everyone what it is... one voice, one message. Be positive, but be candid.
billyjoejimbob said at 8:14 pm, March 13, 2009
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