GM is establishing credit lines to ensure it has the needed cash for the recession ahead.

General Motors updated fans, owners, and investors today regarding its financial strength. The company issued a press release saying it has secured $3.6 billion under its three-year revolving credit agreement. These funds are in addition to the $2 billion 364-day revolving credit agreement to April 2021 GM told us about earlier.

“We continue to enhance our liquidity to help navigate the uncertainties in the global market created by this pandemic,” said GM Chief Financial Officer, Dhivya Suryadevara. “Fortifying our cash position and strengthening our balance sheet will position the company to create value for all our stakeholders through this cycle.”

GM also suspended its quarterly cash dividend on its common stock, suspended its share repurchase program, and has taken other significant austerity measures to preserve near-term available cash. The company says that its goal is to continue reinvesting in the business at pretax returns equal to or greater than 20 percent; maintaining a strong investment-grade balance sheet; and returning capital to shareholders after the first two objectives have been met.

Fewer financial experts are predicting a sharp upturn to the economy. The general idea is that instead of a shape “V-shaped” recovery, the impact could be longer and the recovery “U-Shaped.”

J.D. Power and Associates is predicting new vehicle sales will be about 25% lower than they would have been this year if not for the pandemic.