GM - no second installment, without money by March 31

Posted on Thursday, 22 January 2009 , 15:01:30 byEmil

Filed under gmgeneralmotorsinstallmentmoneycashmarchGM

GM - no second installment, without money by March 31

General Motors, last week, was to take its 5.4 million Dollars second installment from the federal loans like promised, but those money never appear. The carmaker will be receiving the cash this week, that according to Fritz Henderson, the carmaker’s President and CEO, who affirmed the installment is now crucial for the survival of General Motors beyond March.

“If we don’t get our second installment of the funding we’ll run out of cash, it’s that’s simple,” said Henderson at the World Congress (Automotive News) in Detroit recently. “We’ve been finalizing what we need to do. We anticipate receiving it. But it’s critical that we receive it.”

GM received in December 4 billion of the 13.4 billion Dollars the Treasury Department agreed. The automaker is supposed to get 5.4 billion Dollars on January 16 plus the remaining 4 billion Dollars in loans on 17 of February. “It’s a tight time frame. We’re confident we can achieve all our milestones. Not everything has to be done by February 17,” he affirmed.

The day General Motors is to get its 3rd installment, it's required also on submitting a plan for the government with details on how it intends on becoming profitable and viable.