General Motors said Tuesday it is "aggressively pursuing austerity measures" and intends to draw down $16 billion from its revolving credit facilities.
The company called it a "proactive measure" to preserve financial flexibility. GM expects to have $15 billion to $16 billion in cash at the end of this month.
In the wake of the announcement, GM shares were up more than 9% in early trading. The stock, which has a market value of $26.3 billion, had fallen 50% in 2020.
"We are aggressively pursuing austerity measures to preserve cash and are taking necessary steps in this changing and uncertain environment to manage our liquidity, ensure the ongoing viability of our operations and protect our customers and stakeholders," CEO Mary Barra said in a statement.
GM said its financial services arm, GM Financial, expects to end the first quarter with about $24 billion in liquidity and is managing below its target leverage ratios.
The automaker is also suspending its 2020 outlook, citing the uncertainty caused by the coronavirus pandemic. GM has closed all its North American factories until at least March 30.
