Automotive News reports that General Motors has received another $4 billion in federal funds and won some important concessions from union workers in Canada:
General Motors on Friday borrowed another $4 billion from the U.S. Treasury and won a cost-cutting deal from Canadian auto workers as a showdown with bondholders set the stage for a bankruptcy filing by the end of the month.
The latest emergency funds extended by the Obama administration take the total government funding to keep GM afloat since the start of the year to $19.4 billion.
GM said it expected that total to rise to $27 billion after June 1, a government-imposed deadline for the embattled automaker to achieve a sweeping restructuring analysts say will require bankruptcy to complete.
The concessions from Canadian autoworkers will help reduce labor costs by 28% for GM’s operations in that country.