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ERROR: type should be string, got "https://www.wsj.com/articles/general-motors-cfo-has-tools-to-cushion-car-makers-finances-11568757154\nGeneral Motors CFO Has Tools to Cushion Car Maker’s Finances\nDhivya Suryadevara has range of options to buoy company’s cash during workers’ strike\nGeneral Motors assembly workers picket outside the car maker’s plant in Bowling Green, Ky., during the United Auto Workers union strike.\nPhoto: bryan woolston/Reuters\nNina Trentmann\n@Nina_Trentmann\nnina.trentmann\nnina.trentmann@wsj.com\nSept. 17, 2019 5:52 pm ET\nGeneral Motors Co. Chief Financial Officer Dhivya Suryadevara has a range of tools at her disposal to cushion the car maker’s finances while workers are on strike.\nAmong them are trimming costs, delaying payments to suppliers and reducing capital expenditures, analysts said.\nThe United Auto Workers union strike, which began Monday, involves about 46,000 workers at 30 plants in 10 U.S. states.\nFinance chiefs play a key role in planning a company’s spending plans as well as managing its cash balances, payment cycles and costs.\nGM had about $17.5 billion in cash and marketable securities from automotive operations alongside a $16.5 billion revolving credit facility at the end of June, leaving it with about $34 billion in available liquidity, according to Fitch Ratings Inc.\nThe amount is considered substantial, but Ms. Suryadevara—who has been at the helm of the company’s finance department since last September—will have to keep a close eye on cash as the strike continues.\nEstimates on the potential length of the strike range from a few days to several weeks, analysts said. GM’s last strike, in 2007, lasted about two days.\n“When vehicle production stops, cash flows quickly turn negative,” said Stephen Brown, a senior director at Fitch covering the North American auto sector.\nEstimates for the loss in operating income at GM range from around $50 million to roughly $100 million a day, according to analysts.\nMs. Suryadevara could focus on reducing variable costs such as marketing and could delay payments to suppliers to ensure GM maintains a strong cash balance, said David Whiston, an analyst at Morningstar Inc. “You don’t have control over receivables, but over payables,” he said.\nTo improve year-end cash flow, the company tends to wait until the next year to pay some bills received in the fourth quarter, Mr. Whiston said.\nGM declined to disclose details on its payment cycles or to make Ms. Suryadevara available for comment.\nU.S. auto manufacturers usually take 30 to 45 days, sometimes even longer, to pay their suppliers, according to Fitch.\nMs. Suryadevara could also zero in on GM’s capital expenditures in search of additional savings, analysts said. The company plans to spend $8 billion to $9 billion on capital expenditures this year, according to the CFO during an Aug. 1 earnings call.\nGM’s management “would be more aggressive on reducing capex in 2020 if the strike lasts longer,” Bill Selesky, a senior analyst at Argus Research Co., said in an interview.\nGM is currently working to reduce annual costs by $4.5 billion through 2020 and is on track to meet its target, Ms. Suryadevara said at a bank conference on Aug. 13.\nShould the walkout last longer than a few weeks, the finance chief could be forced to revise the company’s guidance, analysts said. GM said on Aug. 1 it remained committed to its full-year outlook of earnings per share of $6.50 to $7.00 and free cash flow from automotive operations of $4.5 billion to $6 billion.\n“They have about two weeks before the upper end of the EPS guidance is in jeopardy,” Mr. Whiston said. A strike lasting four to six weeks is expected to result in a cut to the car maker’s guidance. “That’s the hard part—to know how long this is going to last,” he said.\nUncertainty around the strike could affect how the company plans for 2020. GM usually finalizes its budget at the end of October, but it could be forced to update its spending plans if the strike continues, Mr. Selesky said.\n“When they make a budget, they always have a best-, medium- and worst case scenario,” he said.\nWrite to Nina Trentmann at Nina.Trentmann@wsj.com\nCONTENT FROM OUR SPONSOR\nCFO Insights and Analysis from Deloitte\nBanks Can Prioritize Fair Treatment of Consumers\nRegulators increasingly expect more from financial services organizations than basic compliance with consumer protection laws. A proactive approach to protecting customers begins with a strategy for identifying how they might be harmed across the full scope of products and services, then mitigating risks.\nPlease note: The Wall Street Journal News Department was not involved in the creation of the content above.\nMore from Deloitte\nThe Leaders in the Race to Build a Better EV Battery\nBest of CES 2021: The (Virtual) Tech Show’s Weirdest and Most Wondrous Gadgets\nThe Story Behind the Market’s Hottest Funds\nU.S. Retail Sales Fell 0.7% in December as Covid-19 Cases Rose\nCopyright © 2021 Dow Jones & Company, Inc. All Rights Reserved"