GM: We don't need 4.1B Line of Credit

Remember Chicken Little? Wait, of course you do. I forgot there was a huge movie with Zach Braff that totally bastardized the story. Anyways, in the story, of course the "sky was falling". In June 2007, GM played the starring role of this story, and took out 4.1 billion dollars in credit.

Citing a potential need for cash, GM forged ahead with their UAW negotiations and potential disaster with their workforce. But, that went a lot better than expected cost-wise and timing-wise. So then, they turned to the major launches of the new Chevy Malibu and Cadillac GTS, which did much better than expected. Since they didn't need the cash then, they have speculated that they will not need it in the future, and have therefore canceled the line of credit.

This news couldn't have come at a better time for the company and US automakers as a whole, as the entire credit industry has been rocked by the housing industry and trickled deep into the American economy. Perhaps this is a great sign of things to come and could help propel a much better year for GM. Otherwise, it's back to borrowing on plastic...And then, suddenly many will question whether GM is playing Chicken Little or the Boy who cried Wolf...

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GM: We don't need 4.1B Line of Credit

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