GM Could Repay Some Bailout Money in '09

After a strong October, there is a chance that GM may repay some of its $50 billion in government bankruptcy aid before the end of 2009, according to Chairman of the Board Ed Whitacre (above).

Although Whitacre declined to name an actual figure, the possibility of even a modest loan repayment could help GM’s image. Since it filed for bankruptcy in June — after bleeding $88 billion since 2004 — the Obama administration has made a priority to keep GM afloat with a 61% government stake in the company.

October was the first time GM’s sales have risen since January 2008, and its market share improved to 20% for the month. It’s only one month, but it has given Whitacre and CEO Fritz Henderson hope that the automaker has made it through the roughest waters. Even if the amount is negligible — $50 billion is a pretty deep hole — in terms of a PR move, it couldn’t hurt.

GM May Repay Some Fed Aid in ’09 (Detroit News)

Comments

While any amount will be helpful and show good faith, what ever they do will be highly criticized by those that never supported the bailout.