General Motors Company (NYSE:GM) Secured $11 Billion Credit Facility

General Motors Company(NYSE:GM) has reportedly secured a credit facility worth $11 billion, more than doubling the financial cushion and thereby reinforcing the balance sheet of the largest automaker in the US.

The additional liquidity could find its use in funding a number of strategic goals of GM that take into account while breaking even in Europe by mid-decade and a probable purchase of Ally Financial’s European and Latin American auto loan operations.

The new credit facility replaces a $5 billion line that was secured by the company more than 2 years back in the run-up to its initial public offering sometime in November of 2010.

It proposes better terms and the capability to borrow in currencies other than the US dollar, as told by GM in a statement on Monday.

Chief Officer of GM, Dan Ammann said that the new revolver offers a crucial source of backup liquidity and financial litheness, further supporting the company’s stronghold balance sheet.

35 banks from 14 nations have taken part in the agreement.

Dave Roma, a spokesman of GM said that the contract provides GM with a credit facility that can be compared to those of other nations close to its size. The second largest automaker in the US boosted its credit facility to $9.3 billion this year.

The new credit line adopted by GM covers a $5.5 billion three-year facility and another $5.5 billion that is slated to mature in November, 2017.

Under the conditions, GM’s in-house finance company is in a state to borrow.

It was earlier this year when GM was looking for a credit facility of as much as $10 billion, as per a few people having knowledge regarding the matter.

The US government has invested $50 billion into GM during the period of financial crisis. The US Treasury nearly halved its stake in GM during the company’s IPO.

You have read this article General Motors (GM) / General Motors Company (NYSE:GM) / GM / NYSE:GM with the title General Motors (GM). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/11/general-motors-company-nysegm-secured.html. Thanks!

U.S. auto sales the best in 4½ years - General Motors (GM), Ford Motor Company (NYSE:F)

Cheap financing, improving consumer confidence and a rebound by Toyota Motor Corp have all contributed to the most spectacular auto sales in the past 4 ½ years in the U.S.

While analysts had estimated sales of 14.5 million units, the actual sales on an annualized basis till September were 14.94 million, the highest rise since March 2008, four months after the U.S. recession of 2007 to 2009 began.

The sales for September month rose to 1,188,865 new vehicles, up 13 percent. Analysts had expected only a 9 percent increase. According to General Motors Company(NYSE:GM) and Ford Motor Company(NYSE:F), rising home prices and fewer jobless claims were the reasons for the rise in car purchases.

Easier availability of cheap financing was another factor which spurred auto sales. A large number of Toyota buyers last month received in no interest loan.

How Should Investors Trade The Auto Sector Now? Find Out Here

"The money is so cheap now," said an analyst at TrueCar.com, and added, "Higher resale values and cheap money has been enabling automakers to offer some of the most attractive leasing programs we've seen in years."

"I think in general with the economy chugging along at about 1.5 percent to 2 percent that we are gradually seeing people come back," said Ellen Hughes-Cromwick, chief economist at Ford.

The largest U.S. automaker General Motors has said that the sales of its mini, small and compact cars nearly doubled last month. Ford’s small car sales were also up by 73 percent. This is because the rise in fuel prices has encouraged people to shift from trucks to cars.

"There has been a fundamental shift of truck to car that we've been seeing for the past few years," said Don Johnson, sales chief at Chevrolet, and went on to say that the September results indicated a continuation of that trend.

At closing bell, Ford shares were trading at $9.79, down 1.4 percent. On the other hand, the General Motors stock had climbed a 2.6 percent and was changing hands at $23.68.

You have read this article F / Ford / Ford Motor Company(NYSE:F) / General Motors (GM) / General Motors Company(NYSE:GM) / GM with the title General Motors (GM). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/us-auto-sales-best-in-4-years-general.html. Thanks!