GM could be forced to borrow $10 billion

General Motors Corp. may borrow $10 billion as early as next quarter because rising commodity costs and falling U.S. sales are crimping cash flow, an analyst at JPMorgan Chase & Co. said.

The largest U.S. automaker may secure a bank loan by borrowing against foreign operations, inventory, trademarks or its stake in lender GMAC LLC, New York-based analyst Himanshu Patel said in a report released Tuesday.

"Liquidity concerns about General Motors have clearly become re-elevated in recent weeks as oil has soared and the Fed rate hike talk has surfaced," said Patel, who has an "overweight" rating on GM shares. "GM is burning cash fast, but it still has many unencumbered assets that can be borrowed against." Detroit Free Press