GM Returns $140M to Federal Government
DETROIT - General Motors Co. is returning $140 million to the federal government -- money its suppliers won't need to tap now that the automaker has emerged from bankruptcy protection, reported the Detroit Free Press.
The $140 million is part of $5 billion set aside in April for suppliers to GM and the Chrysler Group as questions arose about whether GM could pay its supply base as they drew closer to their bankruptcy filings. The total was later adjusted down to $3.5 billion.
The federal aid was meant to help suppliers avoid a cash crunch by paying suppliers more quickly than their automaker customers or to guarantee payments.
GM requested $290 million for its suppliers and of that is returning $140 million because the company expects fewer suppliers to draw on that aid, said spokesman Alan Adler.
After exiting bankruptcy, GM has been paying its suppliers more quickly and more frequently. GM started a program in which it pays most of its North American suppliers weekly instead of paying them for a month's worth of work.
The program, which GM is rolling out in Europe, also cuts the time a supplier waits to be paid to 47 days compared with as many as 60 days.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →