General Motors Corp., facing a probable bankruptcy filing by June 1, said it may need an additional $1.4 billion in US aid by that date and $7.6 billion more from the US Treasury afterward.
The largest US automaker borrowed $4 billion from the Treasury yesterday, an increase over the projected $2.6 billion, to meet its cash needs this month, according to a regulatory filing.
A need for cash sooner than forecast spurred the accelerated borrowing, said GM, which has until June 1 to restructure. That shift means that the $7.6 billion needed in June and beyond is a decrease from a planned $9 billion, the automaker said.
Last night, President Obama said he is confident that the company will thrive after it is restructured.
“Ultimately, I think that GM is going to be a strong company and we are going to be pulling out as soon as the economy recovers and they’ve completed their restructuring.”