- May 24, 2007
- Reaction score
GM announced today it will forgo $2 billion in federal loans set aside for the month of March in last year’s bailout funding.
“This development reflects the acceleration of GM's company-wide cost reduction efforts as well as pro-active deferrals of spending previously anticipated in January and February,” the company’s statement reads.
Now, we’re not sure if this precludes the company from asking for that same $2 billion at another time, or if the company plans to reduce its request for more money, as it has previously indicated it would at the end of March, when it files terms with the government on the status of its recovery plan.
Oddly enough, this news came attached to another press release regarding a new concessions deal with the Canadian Auto Worker union. GM is still working on renegotiating with the UAW for U.S. workers. The UAW deal is considered a major underpinning of the company’s turnaround.
You would think GM would play this up a bit more than in a boilerplate press release — especially in time for people to start shopping for a new Camaro.