GM May Seek to Double Its Credit Line

General Motors Co. is in preliminary discussions with some of its current lenders about increasing its existing $5 billion revolving credit line by $4 billion-$5 billion within the next nine months, The Wall Street Journal reports.

The newspaper cites unidentified sources who say the company also wants to extend the credit line's maturity beyond the current 2015 expiration. GM's current lenders include Barclays, Citigroup, Deutsche Bank, JPMorgan Chase and Morgan Stanley.

The carmaker is not strapped for cash. GM had $32.6 billion in automotive cash and only $3.8 billion of long-term debt on its books on June 30. Analysts estimate the company needs about $20 billion in cash to operate comfortably.

Still, GM could face hefty future cash needs to cover losses in Europe and investments in new models, the newspaper notes. Its sources say the company also might decide to devote some cash to reducing its pension obligations or repurchasing some of its shares from the U.S. Dept. of the Treasury.

GM has not tapped its existing credit line. But increased liquidity would strengthen the company's balance sheet and provide a cushion if it opts to spend more cash, according to the Journal. It says the result could be a higher GM credit rating.