GM May Not Need Further Loans: Report

General Motors has enough government loans to cover its worst-case scenario and added it won't need more if the economy stabilizes, a report says.

Author:: TSC Staff
Publish date:: Jan 7, 2009 5:25 PM EST

Updated from 4:42 a.m. EST

General Motors

(GM) - Get Report

has enough government loans to cover the worst-case scenario it described last month and added it won't need more if the economy stabilizes, according to a

Bloomberg

report.

"The U.S. Treasury's $13.4 billion bridge loan to GM, coupled with the separate transaction for GMAC, meets our liquidity needs under the scenarios outlined in our December plan to Congress," a GM spokesman told

Bloomberg

Tuesday.

Last month, the U.S. government approved a bailout of automakers GM and

Chrysler

. GM received $13.4 billion, while its financing arm

GMAC

got $6 billion.

GM said in early December that its worst-case scenario for 2009 U.S. auto sales was 10.5 million vehicles. On Monday, the automaker said it still expected 2009 sales of 10.5 million to 12 million.

Meanwhile, a separate report says Ezra Merkin, chairman of GMAC, is set to step down soon.

The

Financial Times

reports Merkin's departure is likely to be linked to conditions set under the U.S. government's aid package to GMAC. The bailout requires the company to appoint an independent chairman.

Merkin has been caught up in the scandal surrounding Wall Street money manager Bernard Madoff and Madoff's alleged $50 billion Ponzi scheme.

Merkin is a nominee of Cerberus Capital, which owns 51% of GMAC but whose stake will be greatly reduced under the terms of the bailout.

GM shares ended Wednesday's trading session up 19 cents, or 4.8%, at $4.13.

This article was written by a staff member of TheStreet.com.