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

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →