DETROIT (MCT) – General Motors Corp. has informed President Barack Obama’s auto task force that the struggling automaker will not need a $2-billion loan in March from the U.S. government, as it previously said it would, the company said early Thursday.

GM Chief Financial Officer Ray Young, in a statement, said the company won’t need the money so soon because cost cuts at the company, as well as other measures, are resulting in savings.

“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,” Young said.

The Detroit automaker is operating with a $13.4 billion loan from the U.S. government and said Feb. 17 that it could need as much as $16.6 billion more to keep operating.

Part of that Feb. 17 request said it needed $2 billion in March and $2.6 billion in April.

With Young’s new comments, it is unclear when GM would next need government loans or if its total need has changed.

“GM will remain in regular contact with the Presidential Task Force on the Auto Industry on the status of GM’s restructuring actions, its liquidity position, timing of future funding requests, and other relevant topics of mutual concern,” Young said.



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AP-NY-03-12-09 1723EDT


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