General Motors announced on Friday that it has received a fresh injection of US$2 billion in emergency funds from the Obama administration as the company strives to avoid what appears be for many analysts, the unavoidable - bankruptcy... The new loan pushes the overall amount of the automaker's government aid to $15.4 billion. In a statement issued today, the company thanked the Obama administration and said that it would continue its ongoing restructuring plans.Earlier this week, GM said that it would shut down 13 of its North American plants for multiple weeks during the summer while according to a news report, the automaker has decided to 'kill' Pontiac instead of keeping it as a 'specialty' brand with few but niche products.
Official GM Satetment
GM confirmed today that it will draw an additional $2 billion in U.S. Treasury loans to maintain adequate liquidity as the company undergoes an aggressive restructuring. As indicated in GM's February 17 viability report to the U.S. Treasury, the additional funding will be consistent with projected incremental draws that GM could need in the 2nd Quarter of 2009.
Today's loan draw will bring the total U.S. Treasury funding received to date to $15.4 billion. 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. We will continue to work closely with members of the President's Auto Task Force throughout our reinvention and together we will continue to monitor our liquidity needs during this period.
