General Motors is to delay paying its US dealers their incentive payments. In a bid to conserve rapidly dwindling cash supplies, incentive payments are to be delayed by up to 14 days.
This could help GM retain over £200m, analysts in the US have said. Dealers are accustomed to receiving payments on a weekly basis, but incentives due to be paid on 28 November have been delayed until 11 December.
By deferring the payments GM hopes to retain enough cash to keep the company in business before any government loan is approved. GM recently announced it only has enough cash to operate until the end of the year.
In a letter to dealers outlining the payment delays Mark LaNeve, GM’s Vice President for North American Vehicle Sales, also encouraged the dealers to petition Congress to approve the proposed $25bn (£17bn) loan package.