13 Mar 2009

March funding not needed now by GM

7:13 am on 13 March 2009

General Motors says it will not now need $US2 billion in funding it previously requested for March from the United States government.

GM said the development reflected the acceleration of its efforts to cut costs. It delayed spending planned for January and February.

The auto company has already received $US13.4 billion in federal aid and has requested another $US16.6 billion.

In December, GM warned it could run out of cash in a matter of weeks if money were not made available.

GM said on Thursday the $US2 billion requested for March would not be needed "at this time".

However, the BBC reports the company did not indicate whether it would need the funds at a later date or if it planned to change its request for the $US16.6 billion requested last month.