GM dropping request for $14.4B from Energy Department

General Motors Co. is announcing today it will end its request for as much as $14.4 billion in loans from the Energy Department's $25 billion retooling program.

GM had applied for $14.4 billion in loans to retool plants and build more fuel-efficient vehicles, including about $4.4 billion in applications by operations that were reacquired from Delphi, its former auto supplier.

"This decision is based on our confidence in GM's overall progress and strong, global business performance," said GM chief financial officer Chris Liddell. "Withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet."

Liddell said the decision won't delay any of its product planning. It "will not slow our aggressive plans to bring more new vehicles and technologies to the market as quickly as we can."

GM has more than $20 billion in liquidity on its balance sheet and is in a much stronger position in the wake of its bankruptcy restructuring. GM is confident it can pay for the programs on its own.

GM's been debating dropping the request — which it first made in late 2008 — for months. Last week, the company's board of directors approved the decision to withdraw the application.

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