GM delays payments to dealers to conserve cash - WKOW 27: Madison, WI Breaking News, Weather and Sports

GM delays payments to dealers to conserve cash

DETROIT (AP) -- Cash-strapped General Motors Corp. says it will delay reimbursing its dealers for rebates and other incentives later this month, an indication that the company is starting to have cash-flow problems.

  Company spokesman John McDonald said Monday that payments due Nov. 28 will be made Dec. 11, while those due Dec. 4 will be paid Dec. 18.

  The normal schedule will resume after that.

  McDonald says the delays are among several measures designed to help the company conserve cash.

  But restructuring expert Van Conway says the company must know that it's in danger of running low on cash between Nov. 28 and Dec. 18.

  GM and its Detroit counterparts are seeking $25 billion in government loans.

  The automaker has said it could reach the minimum amount of cash needed to run the company before the end of the year.

Powered by Frankly