GM Cancels Request For $14.4 Billion DoE Loan
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
General Motors Company (NYSE:GM) is withdrawing a loan application today from the U.S. Department of Energy. The application was asking for $14.4 billion in direct loans from the Energy department. The government created a loan program called the Advanced Technology Vehicles Manufacturing Loan Program where $25 billion was available in direct DoE loans for companies that were revamping their factories to help improve fuel economy.
“This decision is based on our confidence in GM’s overall progress and strong, global business performance,” stated GM vice chairman and CFO Chris Liddell. “Withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet.” GM had a successful $23.1 billion IPO last year and generated $4.2 billion in net income for the first nine months in 2010. GM also invested around $3.4 billion in U.S. facilities and retained/created about 11,000 jobs.