General Motors has put in place a bigger safety net to protect the company in the event of hard times or a catastrophic market downturn that cripples new car sales.
GM set up an unsecured $14.5 billion revolving credit facility consisting of a $10.5 billion five-year facility and a $4 billion three-year facility. The facility amends and extends GM’s existing $12.5 billion revolving credit facility and 44-different financial institutions subscribed to the new credit facility, GM’s top finance officer said.
“We believe this larger revolver, along with our $20 billion target cash, will provide appropriate liquidity to enable consistent investment in a downturn to generate strong results,” said Chuck Stevens, GM executive vice president and chief financial officer. (more…)