GM Won't Need $2 Billion More

Cost reduction efforts helped balance sheet

General Motors said on March 12 it will not need two billion dollars in loans it had requested from the U.S. government to fund its operations in March "at this time."

"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," GM said in a statement.

"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."

GM did not indicate whether those funds might be needed at some other time or if it planned to alter its request for an additional $16.6 billion in emergency loans on top of the $13.4 billion approved in December.

A spokesman for GM did not immediately return a request for comment.

Copyright Agence France-Presse, 2009

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