Skip to: Content
Skip to: Site Navigation
Skip to: Search
FRIDAY, NOVEMBER 27, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


8

GM Borrows Another $4B From Feds

Company to cut 3,400 more white-collar jobs amid restructuring

Share

(Newser) – General Motors has borrowed another $4 billion from the Treasury ahead of its June 1 deadline to restructure or face bankruptcy, the Wall Street Journal reports. A statement from the automakers said the loan, which brings the total borrowed to nearly $20 billion, is "to maintain adequate liquidity" during restructuring efforts. GM is widely expected to file for bankruptcy next week.

The loan is $1.4 billion more than expected, which GM said was due to "updated timing of when certain expenses would be incurred." The automaker, which reached a cost-cutting deal with the Canadian Auto Workers union yesterday, plans to cut another 3,400 white-collar jobs in the US, the Detroit Free Press reports.

Ken Lewenza, president of the Canadian Auto Workers Union, announces a cost-cutting deal has made with GM at a press conference in Toronto, Canada yesterday.
Ken Lewenza, president of the Canadian Auto Workers Union, announces a cost-cutting deal has made with GM at a press conference in Toronto, Canada yesterday.   (AP Photo/The Canadian Press, Chris Young)
A flag flies over a General Motors dealership. The company has cut large numbers of dealers as part of its restructuring.
A flag flies over a General Motors dealership. The company has cut large numbers of dealers as part of its restructuring.   (AP Photo/Tony Dejak)
« Prev« Prev | Next »Next » Slideshow

We appreciate President Obama's and his administration's ongoing support of GM and the domestic US auto industry as we undertake the difficult but necessary actions to reinvent our company. - statement from GM

« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.24.09
Murdoch and Microsoft: The Mice Are Trying to Roar
11.23.09
Books Are Bad for You
8 comments
VIEWING:
 
tameesha_sharpton
May 23, 09 8:31 AM CDT
why the salaried workers you ask............because the UAW won't permit it to happen to their obloated, overpaid members. Reply
Vote up! Vote down!
0
Jojo
May 23, 09 9:48 AM CDT
So ridiclous. Yes it sucks that a major car company would disappear, but if you can't afford to stay in business, you close. If that is the way it works for a local business, it should be the way it works for you too. I bet GM has already decided they are folding and will take all that money and give out millions in bonuses. Didn't they send out thousands of letters to their dealerships already saying they were closing? I mean, 20 BILLION TOTAL? Come on! YOU'RE NOT WORTH THAT MUCH! Ford hasn't taken any bailout money and they are still alive! Reply
Vote up! Vote down!
+5
IN RESPONSE:
northeast
May 23, 09 11:42 AM CDT
They should have gone under last November. Bush and Obama have been trying to re-animate the corpse of a company....with predictable results.
Vote up! Vote down!
+1
ClearSight
May 23, 09 12:07 PM CDT
More "borrowed" funny money going down the rat hole. Reply
Vote up! Vote down!
+2
Greatbear100
May 23, 09 12:11 PM CDT
since they are expected to file bankruptcy next week why is the government lending them billions more as they lay more workers off? What's the point? Why not just let the bankruptcy court handle it now? Reply
Vote up! Vote down!
+1

View all 8 comments »

LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

285 Stories

 Saab Veering Toward Junkyard 

GM's failed bid to unload Swedish automaker may spell its doom

Nov 25, 09 9:54 AM CST
(Newser) - GM’s bid to sell its Saab unit to a small Swedish automaker has fallen through after Koenigsegg pulled out yesterday, citing costly delays in the closing process. Saab’s managing director tells the Wall Street Journal it’s “premature” to write the employer of 4,000 off,... More »

MORE ABOUT:
General Motors • automaker • Sweden • negotiations • auto industry • Saab • Koenigsegg

UPDATED


 GM to Repay Bailout Early, 
 Posts (Smaller) $1.2B Loss 

Auto giant speeds $1.2B per quarter repayment sked

Nov 16, 09 6:48 AM CST
(Newser) - General Motors will start repaying its $6.7 billion debt to the US and Canadian governments early, with $1.2 billion quarterly payments beginning next month, reports the Detroit News . The accelerated repayment plan is a strong indication that finances are looking up for the troubled automaker, which today... More »

MORE ABOUT:
General Motors • Detroit • auto industry • auto bailout • Cash for Clunkers

 GM Won't Sell Opel After All 

European operations won't go to Canadian outfit

Nov 3, 09 7:47 PM CST
(Newser) - General Motors backed out today on a deal to sell Opel, its European arm, to a Canadian parts supplier and its Russian banking partners. The GM board’s move reflects an uptick in the auto business, the Financial Times reports, and will also be a blow to the German government,... More »

MORE ABOUT:
Magna International Inc. • Germany • General Motors • mergers and acquisitions • auto industry • Opel • Sberbank

285 Stories


Obama says restructured GM will be leaner, meaner
Reuters


Politics  •  Business 
TwitterFollow @NewserPolitics on Twitter

 
General Motors • Treasury Department • restructuring • auto industry • auto bailout

from our news partners