General Motors has been living off government funding for the last few weeks, but it looks as though the auto giant is getting closer to standing on its own two feet once again. GM was scheduled to receive another $2 billion loan this month, but the automaker says it no longer needs it.
GM CFO Ray Young announced on Thursday that the company’s cost-cutting measure have produced enough extra cash for GM to skip further government funding during the month of March.
“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,†Young told the Detroit Free Press.
GM has already received $13.4 billion in government loans and requested an additional $2 billion during March in its recently submitted viability plan. GM also requested $2.6 billion during April, but it remains unclear if the Detroit-based automaker will also skip that payment.
