GM: Never mind that $14.4 billion loan, but thanks

volt_auction_car.top.jpgThe Department of Energy loan was supposed to support production of fuel-efficient cars like the Chevrolet Volt, but GM says it doesn't need the money. By Peter Valdes-Dapena, senior writer


New York (CNNMoney) -- Citing improved financial performance, General Motors announced Thursday it was withdrawing a $14.4 billion application it had filed with the Department of Energy.

"This decision is based on our confidence in GM's overall progress and strong, global business performance," Chris Liddell, GM's vice chairman and Chief Financial Officer said in a statement.

GM's loan application predated the automaker's federal bail-out and bankruptcy. It was to be part of the DOE's Advanced Technology Vehicles Manufacturing Loan Program authorized by Congress in December, 2007.

That program was set up to help cash-strapped automakers build new highly fuel-efficient cars and comply with new stricter fuel economy rules.

The application process was "almost completed," GM spokesman Tom Wilkinson said, but the loan had still not been approved and GM never received any of the money.

In November, GM (GM) reported its strongest quarterly earnings since 1999, announcing it had earned nearly $2 billion. The automaker is expected to report its first annual profit since 2004 this year.

The automaker also launched an Initial Public Offering in November, completing its return from bankruptcy as a publicly traded company.

Forgoing the DOE loan does not mean GM will stop work on fuel-efficient cars, the automaker said.

"Our forgoing government loans will not slow our aggressive plans to bring more new vehicles and technologies to the market as quickly as we can," said Liddell.

GM launched commercial production of the Chevrolet Volt, an electrically powered car, in late November and has recently begun selling the Chevrolet Cruze Eco, a gasoline powered car with EPA-estimated highway fuel economy of 42 miles per gallon.

If GM had gotten the loan it would have meant more headlines about GM getting money from the government, said Mike Omotos, a senor analyst with the market research frim J.D. Power and Associates. That's something GM needs to avoid.

"It's another step in getting away from that 'Government Motors' tag," he said. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Find Your Next Car
Index Last Change % Change
Dow 17,804.80 26.65 0.15%
Nasdaq 4,765.38 16.98 0.36%
S&P 500 2,070.65 9.42 0.46%
Treasuries 2.18 -0.03 -1.27%
Data as of 5:49am ET
Company Price Change % Change
Bank of America Corp... 17.62 0.09 0.51%
Apple Inc 111.78 -0.87 -0.77%
General Electric Co 25.62 0.48 1.91%
Intel Corp 36.37 -0.65 -1.76%
Microsoft Corp 47.66 0.14 0.29%
Data as of Dec 19

Sections

New York Magazine reporter Jessica Pressler, who has been caught up in controversy this past week, will not be moving on to a new job at Bloomberg News. More

Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More

Forums in dark corners of the web sell the kinds of hacks that befell Sony. More

Unilever sued Hampton Creek over its egg-free mayonnaise spread Just Mayo. But the company behind Best Foods and Hellman's mayonnaise has now dropped the lawsuit. More

The income of the top 1% jumped significantly in 2012, far outpacing inflation. Not only did this group make a larger share of the country's income, their share of total taxes also jumped from 35% to 38%. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.