GM seeking $5B line of credit

The line of credit would help GM in its quest to operate without further government help, The Detroit Free Press said.

The Free Press, citing an unnamed source close to talks with banks, said GM is looking to the loans to help repay some of its debt, which stood at $14 billion as of March 31, and to prepare to weather another slide in U.S. vehicles sales.

GM, which had $23.3 billion in cash at the end of the first quarter, repaid the final $5.8 billion of U.S. government loans in April but the federal government still owns a 61 percent stake in the company. The government is expected to sell some of its shares at a public stock offering this year.

GM sales rose 14 percent the first half 2010, while its market share fell from 19.6 percent to 19.2 percent.

The automaker, which posted an $865 million first-quarter profit, is dumping its Hummer, Pontiac, Saab and Saturn brands as part of a restructuring.

Copyright 2010 United Press International, Inc. (UPI).