General Motors Co. (GM), said it will draw about $16 billion from its credit buffers to boost liquidity and maintain financial stability amid uncertainty in global markets exacerbated by the fast-spreading coronavirus outbreak.
The Detroit-based automaker said the funds will add to the company’s cash position of about $15 billion to $16 billion expected at the end of March. General Motors is also suspending its 2020 guidance due to the uncertainty around the rising business impact of the COVID-19 pandemic.
Wall Street analysts remain bullish about General Motors, rating the company with a Strong Buy and an average price target of $38.90 per share. At the current share price, the stock has 91.15% upside potential in the next 12 months.
“We are aggressively pursuing austerity measures to preserve cash and are taking necessary steps in this changing and uncertain environment to manage our liquidity, ensure the ongoing viability of our operations,” said General Motors chairman and CEO Mary Barra.