General Motors Co., said to be exploring as much as another $5 billion in short-term credit, is seeking to secure low borrowing costs as it pours billions in cash into new products and pension obligations.
GM may seek $4 billion to $5 billion in additional revolving credit from some of the lenders that provided its current line of credit, said a person familiar with the discussions who asked not to be identified because the plans are private. GM declined to comment in an Aug. 24 e-mail.
The move should lock in the Detroit-based automaker's ability to borrow at good rates and give it capacity similar to Ford Motor Co., which has $9.3 billion in revolving credit facilities. GM has "substantial cash requirements going forward," including pension obligations and reinvesting in operations, according to an Aug. 3 regulatory filing.
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