GM Says It Doesn't Need $2 Billion From Gov't In March

The AP reports:

DETROIT – General Motors Corp.'s chief financial officer says the company will not need the $2 billion loan installment for March that it requested from the U.S. government in February.

CFO Ray Young said Thursday in an interview with The Associated Press that GM told the Obama administration it won't need the money so soon because its cost cuts are starting to take hold.

GM borrowed $13.4 billion from the government earlier this year. Last month, it said it would need up to an additional $16.6 billion to keep operating, including $2 billion in March and $2.6 billion in April.

Young would not say when the company will need more government loans or whether it would reduce its total financing request

This is good news and a sign that the troubled automaker is starting to get its house in order. GM is one of this nation's largest employers and its failure would have an absolutely catastrophic effect on the economy. For those who said they could not do what it looks exactly like they are doing, I can only say patience is a virtue. Cuts take time to trickle to the bottom line. Its not a magic wand, but a process that takes time to show results. We will see further results when the union makes similar concessions for GM like they just did for Ford.