GM is making good on its promise to be fully compliant with regulators and is confident its GM financial and corporate governance practices are meeting the highest standards, GM Chairman Dan Akerson said Wednesday.
The automaker said it was “fully compliant” with regulators when it disclosed a $2.9 billion loan to GMB, the largest loan of its kind in the United States, in the first quarter of 2017.
The loan is for $1.4 billion to GM’s Commercial Paper and Commercial Banking divisions.
It’s the largest single loan for GM in U.S. history.GM’s chief financial officer, James Ransom, said Wednesday GMB’s loan is the largest in its history.
“We’ve been fully compliant since the beginning of our ownership,” Ransom said.
“We’ve done everything we can do to comply with the laws and regulations of the United Kingdom and the United State of America, and we will continue to do so.
I can assure you that GMB is fully compliant.”
He added that GM’s loan to BHP Billiton was approved by U.K. regulators.
GMB said the company is fully complying with all U.N. financial and regulatory requirements.
The company said it also has a $1 billion loan guarantee agreement with the Federal Reserve, and a $10 billion loan commitment from the U.A.E. “This loan, along with our ongoing commitment to provide long-term liquidity to our dealers, is critical to ensuring that GM is fully capitalized and in good shape for a challenging future,” Ranson said.
The lender and GMB have also committed to meeting their contractual commitments for all GM and BHP commercial paper, commercial banking and other obligations.
GM is also committed, Ransom added.
Ransom said the companies plan to have GMB repay the loan in full within six months, though GMB will need to raise capital to repay the full amount.
The news comes as GM, the world’s largest automaker, continues to face scrutiny from U.s. regulators after a series of safety violations, including the fatal ignition switch failure of a Chevrolet Equinox that killed two people in California last year.