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GM Borrows Another $4B From Feds

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

By Rob Quinn, Newser Staff

Posted May 23, 2009 6:09 AM CDT

(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.

[Images (2)]

[Quotes (1)]

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. (AP Photo/Tony Dejak)

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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

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COMMENTS

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Showing 3 of 5 comments

Derni

May 25, 2009 6:50 AM CDT

IO went out today just lookin at the possible deals on cars for the BIG memeorial day weekend CAR sales-it ain't happening-very few people in the showrooms-or wlking the lots-they bvetter come up with some lower costs and lower loans or thye'll have more going under...

Greatbear100

May 23, 2009 5:11 AM 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?

northeast

May 23, 2009 4:42 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.

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Obama says restructured GM will be leaner, meaner
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Politics • Money

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

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GM Borrows Another $4B From Feds