GM Prepares $6 Billion Line of Credit

The automaker is shoring up liquidity, an indicator that the company fears the strike at its U.S. plants may drag on.

By David Welch | October 04, 2023 at 11:07 PM

Photo: United Auto Workers (UAW) members and supporters on a picket line outside the General Motors Co. Flint Processing Center in Swartz Creek, Michigan, on September 25, 2023.

General Motors Co. is setting up a $6 billion line of credit to shore up liquidity, a move indicating the carmaker is preparing for the strike at U.S. plants to drag on, even as the cost of the strike has already reach $200 million.

The Detroit-based company’s move to bolster its financial position was announced in a securities filing early Wednesday. GM wants the 364-day revolving credit line, which will mature on October 1 next year, to maintain operational flexibility, a company spokesperson said.

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