GM Delays Dealer Payments To Conserve Cash
Agent009 submitted on 11/18/2008 Official Bell & Ross Timestamp: 11:09:38 AM
10 user comments | Category: Misc News | Source: | SOURCE: www.financialpost.com
General Motors Corp.
, seeking low-interest federal loans to stave off financial collapse, said it will delay reimbursing U.S. dealers for sales incentives by about two weeks to preserve dwindling cash.
The move postpones payments to almost 6,500 dealers even as the largest U.S. automaker urges them to lobby Congress for the US$25-billion industry bailout bill that Senate Democrats began debating Monday. GM (GM/NYSE) said it won't disclose the savings.
"It is indicative of the impact that low liquidity has on this company," Rebecca Lindland, an analyst with IHS Global Insight Inc. in Lexington, Mass., said in an interview. "This could really hamstring dealerships from getting more inventory, making payroll. It's a very serious action."
LA Auto Show Photo Gallery
Read Article