GM requests $16.6 billion more in Viability Plan, Saturn and Saab futures bleak
General Motors has just revealed its Viability Plan that was due today to the U.S. Treasury Department under the loan agreement signed back on December 31, 2008. Just like Chrysler, GM is requesting more money than it was initially loaned due to domestic and global industry sales that were historically low in December and January. Today the company received the remainder of $13.4 billion in loans it was granted earlier, but is requesting an additional $16.6 billion to bring the total amount of money lent or available as a revolving line of credit to $30 billion.
The extra money is divided up into an immediate request for an extra $4.6 billion, another $4.5 billion to repay a revolving line of credit that’s due in late 2011 and another $7.5 billion revolving line of credit if the industry experiences sales of 9.5 million units in 2009 and 11.5 million in 2010. On the plus side, GM expects to start repaying those loans in 2012 if things go according to plan.
The GM Viability Plan also addresses the fate of HUMMER, Saturn and Saab. The company says it expects to make a decision on whether to sell or phase out HUMMER by March 31. GM has also requested support from the Swedish government before it sells Saab, otherwise the quirky brand will be forced to file for bankruptcy protection in Sweden by the end of this month if an agreement isn’t reached. As for Saturn, GM says it will phase out the brand at the end of its current life cycle, about three years from now. The only way Saturn might be saved is if its dealers or investors come up with a way to spin-off or sell it. Going forward, GM will mainly focus on its core brands of Chevrolet, Cadillac, Buick and GMC, while Pontiac will become a niche brand with fewer models.
Click here to download the complete GM Viability Plan in PDF format.
[Source: GM | Photo by Bill Pugliano/Getty]