GM says government loans cover worst scenario: report
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| A General Motors logo is seen at a car dealership in Toronto December 12, 2008. REUTERS/Mike Cassese |
(Reuters) - General Motors Corp (GM) has adequate government loans pledged to cover the worst-case scenario it outlined in December to Congress and will not need more unless the economy worsens, a Bloomberg report said.
"The U.S. Treasury's $13.4 billion bridge loan to GM, coupled with the separate transaction for (lender) GMAC, meets our liquidity needs under the scenarios outlined in our December plan to Congress," GM spokesman Greg Martin told the agency.
GM could not immediately be reached by Reuters for comment.
On Dec 19, the Bush administration approved a $17.4 billion bailout for GM and Chrysler, of which $13.4 billion was earmarked for GM to stave off a collapse. The government offered a $6 billion support to GMAC LLC on Dec 29.
GM said on Monday it expected to keep its forecast for 2009 U.S. auto sales at between 10.5 million and 12 million vehicles, an outlook it offered last month in seeking the bailout from Congress.
In exchange for government funding, GM had said it would undertake a sweeping restructuring.
(Reporting by Ratul Ray Chaudhuri in Bangalore; editing by John Stonestreet) |
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