GM to Repay Fed Loans Early

GMheadquarters
GM will announce Wednesday that it’s prepared to repay the remaining $5.8 billion in U.S. and Canadian government loans two months ahead of schedule, according to the Detroit News. CEO Ed Whitacre is expected to make the announcement at GM’s Fairfax Assembly plant in Kansas.

The automaker has already repaid $2 billion of the original $6.7 billion in U.S. loans and $400 million of $1.4 billion in loans from Canada, leaving it with $5.8 billion outstanding. According to GM’s agreement with the U.S. Treasury Department, it was to repay the loans by June 30, but GM has moved ahead of schedule. The Obama administration is citing this as progress for the automaker following its bankruptcy.

This by no means ends the government’s stake in the automaker. Taxpayers still have a 61% stake in GM worth about $43 billion. GM CFO Chris Liddell has made rumblings that it’s possible the automaker could launch a public offering sometime this year, but there are no firm plans.

GM Expected to Repay Fed Loans Wednesday (Detroit News)

Comments 

Amuro Ray

You wanna learn 'bou propaganda? How 'bou PR? Well, take this report (not cars.com blog here) as a great lesson :)

The fund being repaid was never used in the 1st place, so there's really nothing to repaid here. It's just as valid by saying "The gov't is now removing 5.8B tarp funds that were available to GM." Now, this is no longer as positive anymore...same fact, different spin.

Obama is a great speaker, but man, great speaker and lier is really a thin line. How can there be any "progress" when there was no expectation to begin with (funds weren't needed in the beginning)?

Real progress will come ONLY when taxpayers get those 43B dollar back, plus interest, and profits made with those 43B!

Merriam Webster

I feel sorry that you don't know what the definition of a loan is.

glad to see they're being responsible with their money this time around

segfault

What's their timeline for repaying the $52.9 billion taxpayer "investment?"

Seville

I see GM hasn't changed one bit as they now want to be congratulated for paying back the tax payer funds they practically stole.
GM = joke

Thinkerdude

Come on people, states are very happy with the taxes on gas, and cities and counties are very happy with registration and sales tax... and the federal government is very happy with the social security and income tax paid by the workers and executives of car companies...

If we calculate how much money GM, Chryler or even Toyota USA have produced for the different administration, the amount of money they have made in taxes from the cars would be huge, more than the money they have received... this is the reason, programs like cash for clunkers work here and in Europe... (in fact, in Japan, the system is to try to renew the cars every eight or ten years...).

A lot of people receive money from the governments, welfare, farmers, movie producers... and I don't see a lot of people complaining about that.

I know the example of automakers in Europe... any time they need money, they say they may be closing this or that factory... and all regional and central governments "help" them.

Dan

Look, I know we're all a bit bitter about Bush's auto industry bailouts, but why can't we take some pleasure in them unwinding? Even if this is just removing GM's access to TARP funds, why is it bad news that our government has fewer liabilities now?

Sheth1487

GM shouldn't have to pay back a single penny. Give me a break.

YOING

I teabag for Ford. So I hate this.

J

Wow, big news. The old GM's loot is never returned.

Tosh

This article is a reminder of why I will never again consider buying a GM car or truck.

YOING

Oh look, I have a copycat. I don't know what I did to deserve this honor but thank you very much. I'm flattered.

Sheth1487

And it didn't disrupt my weekly paycheck.

Go GM!

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