(1888PressRelease)
May 24, 2009 - GM had earlier forecast it would need an additional 2.6 billion dollars of government loans before June 1, but said in a government filing that it now needed 1.4 billion dollars more beyond that initial estimate.
As a result, the carmaker decreased its estimated need for government aid after June 1 to 7.6 billion dollars from an earlier figure of 9 billion dollars.
The company is racing to meet a government deadline for GM to restructure its operations and settle outstanding debt with its creditors, or be forced into bankruptcy. The biggest hurdle for the carmaker remains striking a deal with creditors who are owed some 27 billion dollars.
Media reports have said GM is preparing bankruptcy filings. Its smaller rival Chrysler LLC has already entered bankruptcy.
On Thursday, GM reached a deal with the United Auto Workers Union to modify its labour contract and retiree healthcare plan. Last week, GM announced massive cuts in its dealership network on as part of a drastic effort to cut costs and survive the global recession.
GM informed 1,100 of its nearly 6,000 dealers that their contracts will not be renewed. GM is also working to off-load its Saturn, Hummer and Saab brands, which will further reduce its network. While three firms Wednesday lodged bids to acquire the Opel brand.
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