23.6.2003
GM to accelerate balance sheet strengthening initiative

GM has announced plans to offer an aggregate of approximately $10 billion in debt securities and convertible debentures as part of an overall effort to accelerate improvements in GM's balance sheet and financial flexibility.

GM plans to raise approximately $10 billion with the new offerings, effectively doubling the company's original balance-sheet-strengthening target for 2003 - to $20 billion from $10 billion - and increasing the company's near-term liquidity to more than $30 billion. GM currently expects that substantially all of the proceeds will be used over time to partially fund GM's U.S. pension funds and other retiree benefit obligations. GM expects to make significant cash contributions to these funds by late 2003.

In addition, General Motors Acceptance Corp. (GMAC) will seek to raise approximately $3 billion as part of its ongoing funding plan for 2003, intended to be used for general corporate purposes. GMAC also decided to undertake these debt offerings in order to satisfy funding of ongoing operations. GM's offerings are expected to include intermediate- and long-term debt in U.S. dollars and euros, as well as U.S. dollar debentures that are convertible into GM $1-2/3 par value common stock.