DETROIT -- General Motors told suppliers today that it will move up its next monthly supplier payment from June 2 to May 28.
Advancing the payment will provide a financial boost for the automakers 1,500 North American suppliers, said sources familiar with the move. It also gets money to suppliers ahead of a possible GM bankruptcy filing at the end of May.
GM on Thursday reported a $6.0 billion net loss for the first quarter. The automaker has less than a month remaining to win deals to slash debt and operating costs with the UAW and bondholders to avoid bankruptcy.
President Obamas auto task force has set a May 31 deadline for GM to submit a revised viability plan in support of the automakers request for additional government bailout funds.
GM spokesman Dan Flores said the payments to suppliers are not being moved up in anticipation of a bankruptcy filing. GM has maintained for several months that the restructuring of our business out of court is the best alternative for the company and provides the most practical outcome for all stakeholders, he said.
In a note to suppliers, GM said it took the action because of an unsettled marketplace and because its factories will be on extended shutdown this summer. GM wrote in the note: We are taking this action to help our suppliers.