General Motors of Canada has signed a short-term loan agreement with Export Development Canada that, it said, would provide further flexibility in managing its normal operational needs while it works to complete its business restructuring plans in Canada.
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The automaker has drawn down C$500m of the short-term fully repayable loan facility upon signing to support on-going normal business operations including production, dealer and supplier-related costs.
This was the company’s first draw of financial assistance in Canada since the federal and Ontario governments’ offer of loan support on 20 December, 2008.
GM Canada president Arturo Elias said: “GM Canada appreciates the support of the federal and Ontario governments as we work to complete our transformation into a leaner, customer focused and more cost-competitive operation.
“We are making very tough but necessary changes while remaining focused on providing our customers with the best new vehicles in our history.”
Elias was referring to the new Chevy Equinox and Camaro and the GMC Terrain all being produced and launched in Canada this year.
“GM Canada continues to work with the governments and its key stakeholders to take the necessary actions needed to meet the requirement for an updated restructuring plan for long-term viability by 30 May, 2009,” the automaker said.
