GM taking austerity measures in face of coronavirus slowdown

General Motors said on Tuesday it will draw about $16 billion from its credit lines in a bid to beef up liquidity amid rising business impact from the fast-spreading coronavirus outbreak.

The No. 1 U.S. automaker, which also suspended its 2020 outlook, said it was evaluating its quarterly dividend but has not yet decided to suspend it. As of the end of 2019, GM had $34.6 billion in liquidity, including $17.3 billion in cash.

Companies across the globe are drawing down on revolving credit lines to help them cover their costs through a crisis which has brought many elements of the global economy to a complete standstill.

“We are aggressively pursuing austerity measures to preserve cash and are taking necessary steps in this changing and uncertain environment to manage our liquidity,” Chief Executive Officer Mary Barra said.

Last week, rival Ford abandoned its 2020 forecast and said it was drawing down $15.4 billion from two credit facilities to bolster its balance sheet.

Shares of the company were up 5.9% at $18.65 in premarket trade.