General Motors plans to draw down about US$16bn from its revolving credit facilities, a proactive measure to increase its cash position and preserve financial flexibility due to the current uncertainty in global markets resulting from the COVID-19 pandemic.

The funds will supplement the company's strong cash position of approximately $15bn to $16bn expected at the end of March.

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"We are aggressively pursuing austerity measures to preserve cash and are taking necessary steps in this changing and uncertain environment to manage our liquidity, ensure the ongoing viability of our operations and protect our customers and stakeholders," said Mary Barra, GM chairman and CEO.

"Over the past several years, we have made necessary, strategic decisions and structural changes that have transformed the company and strengthened the business, better positioning us for downturns."

GM Financial (GMF) has strong liquidity and capitalisation.

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It had $24bn of liquidity at the end of 2019 and expects to end the first quarter at similar levels. Its liquidity level is targeted to support at least six months of cash needs, including new originations, without access to capital markets.

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"GM Financial has prepared for times like this by maintaining a strong financial position and ready access to cash. We are confident that we will be able to navigate the challenges created by this environment without capital from GM," said Dan Berce, GM Financial president and CEO.

GM is also suspending its 2020 guidance due to uncertainty around the business impact of the COVID-19 pandemic.