GM Daewoo Auto and Technology president Michael Grimaldi has said the company’s cash position for the April-June period was worrisome.
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“We are monitoring our cash position very closely,” Yonhap news agency quoted him as saying at the Seoul motor show, adding it had become “critical.”
The country’s third-largest carmaker, acquired by GM in 2002, has called for one trillion won (US750m) in emergency loans from creditors to ease its liquidity shortage, AFP reported.
Creditors have yet to endorse the request. The government has said banks should lead the process of salvaging ailing auto firms, maintaining that direct aid breaches global trade rules.
Grimaldi also said the company would go ahead with an investment of 2.5 trillion won by the end of next year to build new facilities despite its liquidity shortage, according to a company spokesman.
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By GlobalDataGrimaldi said GM would begin selling the Chevrolet Volt plug-in hybrid in South Korea in 2011 to gauge consumer demand.
“The Volt is a game-changer,” he said. “This represents the future direction of the automotive industry and GM Daewoo.”
