GM to Make Supplier Payments Five Days Sooner

General Motors will make monthly payments to suppliers five days earlier this month, the American automaker mentioned in a letter sent a few days ago. The reason? The company is taking action "because of unsettled marketplace and because its factories will be on extended shutdown this summer," Autonews wrote in a report published today.

Specifically, all payments will be made on May 28 instead of June 2, with around 1,500 North American suppliers to receive a financial boost before the end of the month.

Obviously, there's a lot to talk about this decision, especially if taking into account the fact that General Motors is facing a deadline of May 30 whether it can pursue with the restructuring process or file for bankruptcy process just like its old pal Chrysler.

"We are taking this action to help our suppliers," GM said in an unconvincing manner according to the aforementioned source.

Now, a scenario in which General Motors is already set on going under Chapter 11 protection is very likely to happen. In this context, making supplier payments before the end of the month or, if you prefer, before the deadline of May 31, is actually a measure taken to help suppliers stay in business until GM gets out of bankruptcy.

Still, there's one big question: is General Motors capable of getting through the next months since it makes dealer payments sooner than initially scheduled? Or is this the first sign that the American car giant will indeed file for bankruptcy?

Not sure at this time but with a few days remaining until the deadline is reached, Chapter 11 is the most likely scenario.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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