General Motors Co has withdrawn its application for $14 billion in subsidized loans from the U.S. Department of Energy, saying it has the financial strength to fund investment in more fuel-efficient and electric vehicles.

This decision is based on our confidence in GM's overall progress and strong, global business performance, said Ed Welburn, GM design chief, said in a speech. Withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet.

Shares of GM gained 1.3 percent to $38.37 in morning trade on the New York Stock Exchange. The stock has gained 16 percent since its November initial public offering.

(Reporting by David Lawder, writing by Bernie Woodall; Editing by Derek Caney)