In August we reported that General Motors was looking to at least double its $5 billion credit line. As of today, it seems that GM has done so, with $11 billion in revolving credit secured. According to the automaker, the new line of credit will replace the $5 billion facility maturing in 2015.
The bigger credit line will give GM backup liquidity and greater financial flexibility for spending on its operations, but it will not happen overnight. Additionally, the new credit facility offers improved pricing and terms, and the ability to borrow in currencies other than U.S. dollars. GM Financial will also be able to borrow under the facility.
With $11 billion, we imagine GM could do a lot for its European operations. The automaker could even start its own space program.
Comments
*whisper*Pontiac*whisper*
…One can wish!
I think money is going to be pumped into South America due to trade/import protection changes, and Europe because, well it’s Europe. This increase in credit just provides a nice cushion for each.
I totally agree with you and bringing Pontiac back. It can be affordable performance.
This is huge across the GM portfolio. As we sit here and whine about lack of HP, vehicle platforms and ha even armrests… Now we can rejoice that GM has the leverage to do what it needs to do and invest in all areas…
” The automaker could even start its own space program.”
GM did had its own “space program” when it had Hughes Spacecraft Systems under its portfolio. Maybe it never built a launcher but it built many satellites which are still in orbit.