GM Tells Treasury, "No Thanks - For Now"
Today, General Motors announced it no longer needs a $2 Billion dollar loan from the Treasury Department this month. That's a change from GM's position on February 17th, when the company indicated that it would need $2 Billion in March and another $2.5 Billion in April. Now, the auto maker says its liquidity is sufficient enough, thanks to cost cutting and deferred spending.
Does this change anything with GM's situation? No.
Certainly, it is encouraging that General Motors is not losing cash as quickly as it once anticipated. And the fact cost cutting steps at GM are producing the savings is welcome news. Still, this is a company needing billions more to survive this crisis. In fact, GM has not changed its position that it may need another $16.6 Billion. That overall loan request is the real story.
Click on Ticker to Track Corporate News:
- Ford Motor
- General Motors
- Toyota Motor
- Honda Motor
Questions? Comments? BehindTheWheel@cnbc.com