DETROIT, March 24, 2020 /PRNewswire/ -- General
Motors (NYSE: GM) announced today that it intends to drawdown
approximately $16.0 billion from its
revolving credit facilities. This is a proactive measure to
increase GM's cash position and preserve financial flexibility in
light of current uncertainty in global markets resulting from the
COVID-19 pandemic. The funds will supplement the company's strong
cash position of approximately $15
billion to $16 billion
expected at the end of March.
"We are aggressively pursuing austerity measures to preserve
cash and are taking necessary steps in this changing and uncertain
environment to manage our liquidity, ensure the ongoing viability
of our operations and protect our customers and stakeholders," said
Mary Barra, GM chairman and CEO.
"Over the past several years, we have made necessary, strategic
decisions and structural changes that have transformed the company
and strengthened the business, better positioning us for
downturns."
In addition, GM Financial (GMF) has strong liquidity and
capitalization. GMF had $24 billion
of liquidity at the end of 2019 and expects to end the first
quarter with similar levels of liquidity. Its liquidity level is
targeted to support at least six months of cash needs, including
new originations, without access to capital markets. GMF is
managing below its target leverage ratios. Additional details can
be found here.
"GM Financial has prepared for times like this by maintaining a
strong financial position and ready access to cash. We are
confident that we will be able to navigate the challenges created
by this environment without capital from GM," said Dan Berce, GM Financial president and
CEO.
GM is also suspending its 2020 guidance due to uncertainty
around the business impact of the COVID-19 pandemic.
Cautionary Note on Forward-Looking Statements: This
press release contains forward-looking statements that represent
our current judgment about possible future events. In making these
statements we rely on assumptions and analysis based on our
experience and perception of historical trends, current conditions
and expected future developments as well as other factors we
consider appropriate under the circumstances. We believe these
judgments are reasonable, but these statements are not guarantees
of any events or financial results, and our actual results may
differ materially due to a variety of important factors, both
positive and negative. A list and description of these factors can
be found in our Annual Report on Form 10-K and our subsequent
filings with the U.S. Securities and Exchange Commission. We
caution readers not to place undue reliance on forward-looking
statements. We undertake no obligation to update publicly or
otherwise revise any forward-looking statements, whether as a
result of new information, future events or other factors that
affect the subject of these statements, except where we are
expressly required to do so by law.
General Motors (NYSE: GM) is a global company
committed to delivering safer, better and more sustainable ways for
people to get around. General Motors, its subsidiaries and its
joint venture entities sell vehicles under
the Chevrolet, Buick, GMC, Cadillac, Holden, Baojun and
Wuling brands. More information on the company and its
subsidiaries, including OnStar, a global leader in vehicle
safety and security services, and Maven, its personal mobility
brand, can be found at http://www.gm.com.
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SOURCE General Motors Co.