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
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)
camera-icon View 1 more image

(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.