GM has not sought a bailout, but the options remain open


DETROIT/WASHINGTON — General Motors Corp said on Saturday it has not sought a federal bailout, but did not rule out the possibility of approaching the U.S. government or taking other dramatic steps to survive a worsening downturn in auto sales. Speculation was triggered by a report in Barron’s, which said GM was expected to seek a loan from the Federal Reserve to bolster its cash position. The financial weekly cited two unnamed people it said had knowledge of the situation.

A GM spokesman said the No. 1 U.S. automaker was not actively pursuing access to low-cost Fed loans but it also wanted to keep all options open as it tries to shore up its cash by US$15 billion through 2009. “In this period of continued uncertainty in the markets, you really can’t rule out anything,” Greg Martin said.