SAN FRANCISCO (MarketWatch) — General Motors Co. said Thursday it has withdrawn $14.4 billion in federal loan requests, a vote of confidence that the auto maker can tackle future challenges without taking on more debt.

The move marks a stark departure from the cash-starved GM GM, +2.40% that spiraled into bankruptcy in 2008 and leaned heavily on the U.S. government to keep from closing down altogether.

“This decision is based on our confidence in GM’s overall progress and strong, global business performance,” Chief Financial Officer Chris Liddell said. “Withdrawing our [Energy Department] loan application is consistent with our goal to carry minimal debt on our balance sheet.”

GM shares rose 2.1% to close at $38.67.

The company’s looking to burnish its image by getting out of the borrowing game after rival Ford Motor Co. F, +1.13% thrived as the only U.S. auto maker not to turn to taxpayers when the industry began to crumble.

“This is a tremendous success story and GM is really getting back on top,” said Mainstay Capital Management’s David Kudla, who manages more than $1 billion for mostly current auto industry workers and retirees.

Meanwhile, Ford applied and was approved for $11 billion in loans, with a total of $5.9 billion funded for the first three years. Ford said it has spent about half of that amount so far, tapping the loans as it incurs actual costs.

The Advanced Technology Vehicles Manufacturing Loan Program Act, which became law in 2007, authorized $25 billion in direct federal loans to manufacturers retooling U.S. factories to build cars that improve fuel economy.

GM submitted its application in October 2009.

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Since emerging from bankruptcy in the summer of 2009, GM said it has invested $3.4 billion in its U.S. facilities and created nealry 11,000 jobs.

The bulk of the investments have been tied to new, fuel-sipping models like the Chevy Volt and the Chevy Cruze, as well as to advanced battery manufacturing.

The company also earned $4.2 billion through the first three quarters of 2010, putting it on track to post its first full-year profit since 2004.

“Our forgoing government loans will not slow our aggressive plans to bring more new vehicles and technologies to the market as quickly as we can,” Liddell added.

GM also announced Thursday that it will start delivering the plug-in electric hybrid Volt to dealers across the U.S. by the end of the year, instead of just to a few select markets.

“A lot of skeptics questioned how long it would take for GM to get this vehicle to market,” Kudla said. “Now GM is accelerating the launch. Clearly GM is confident in the direction it’s heading.”