AFP (Chicago) - General Motors said Wednesday it no longer needs government help to boost the fuel economy of its fleet and withdrew an application for $14.4 billion in loans from the US Department of Energy.
"This decision is based on our confidence in GM's overall progress and strong, global business performance," Chris Liddell, GM vice chairman and chief financial officer said in a statement.
"Withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet."
The $25 billion loan program was funded in 2008 to help companies retool US factories as they worked to meet tough new fuel economy standards.
GM applied for the loan in October 2009, a few months after emerging from a government-financed restructuring under bankruptcy protection, but has not yet received any funds.
Since then, GM has posted three straight quarters of profits totaling $4.2 billion in the first three quarters of 2010, repaid all government loans associated with the bankruptcy and launched a $23.1 billion public stock offering -- the biggest in history -- which allowed the government to reduce its equity stake to around 33.3 percent from 60.8 percent.
GM said it has invested some $3.4 billion in US facilities, most of which has gone towards new, fuel efficient cars like the extended-range plug-in hybrid Chevrolet Volt, the compact Chevrolet Cruze, and advanced battery manufacturing.
"Our forgoing government loans will not slow our aggressive plans to bring more new vehicles and technologies to the market as quickly as we can," Liddell said. "We will continue to make the necessary investments to assert our industry leadership in technology and fuel economy."
