General Motors Corp. has received another $2 billion in fresh working capital from the Obama administration as the ailing Detroit giant works to revamp itself ahead of a June 1 deadline, Treasury Department officials said Friday.
The government previously announced that it would provide GM and rival Chrysler LLC with working capital while rescue talks proceed.
The two automakers have now received almost $20 billion in low-cost loans that has allowed them to keep assembly lines running during the worst industry slump in decades.
GM unveiled plans Thursday to shut most of its assembly plants for up to nine weeks this summer to cope with the prolonged slump in demand. See full story.
GM's top executives have cautioned in recent weeks that a bankruptcy filing is the probable outcome considering the demands of the Obama administration.
At the same time, Chrysler's ability to avert bankruptcy was brought into question by a story in the New York Times Thursday that reported the U.S. Treasury is preparing a filing that could come as early as next week.
Chrysler is up against an April 30 deadline to submit a plan, which likely includes a partnership with Italy's Fiat, to the Treasury to qualify for more bailout money.
Separately, Ford Motor Co. shares rallied as much as 21% early Friday after the company reported improved cash flow and vowed to remain the only one of the three domestic automakers to avoid a taxpayer lifeline. See full story.
GM shares jumped 4.3% to close the week at $1.69.
