NEW YORK — General Motors is in discussions with banks to raise a new $2 billion loan to increase liquidity as it deals with a continuing slump in consumer demand caused by the coronavirus pandemic, according to people familiar with the matter.
The loan is structured as a 364-day revolving credit facility and is a precautionary measure to increase the company’s liquidity, the people said, asking not to be named discussing a private transaction.
“During these times of uncertainty, we continue to evaluate various options to enhance liquidity and will act prudently,” a spokesperson for General Motors said in an emailed statement.
JPMorgan Chase, which is leading the deal, declined to comment.
The automaker recently took “significant austerity measures” to preserve near-term available cash, including suspending its dividend and share buybacks. Demand for new cars has dwindled as people stay home to stop the spread of the coronavirus.
General Motors’ first-quarter earnings are…