GM Boosts Credit Facility to GM Financial

General Motors Co. has agreed to provide its GM Financial Inc. unit with as much as $1 billion if necessary to boost the subsidiary's liquidity.

Under the deal, the carmaker will replace a current $600 million line of credit for GM Financial with a $1 billion intercompany revolving credit facility.

The finance unit, which GM acquired in 2010, also will continue as a designated subsidiary borrower on as much as $4 billion of GM's corporate revolving line of credit.

GM Financial currently provides financing on about 75% of GM's retail vehicle sales. Its new funding agreement with GM raises its profile and enhances its credit worthiness.