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NEW YORK (CNNMoney.com) -- General Motors has made a final payment of $5.8 billion to the U.S. and Canadian governments, paying off the last of its $6.7 billion in loans, the company said Wednesday.
"I am very pleased to announce that, as of today, General Motors has repaid, in full and with interest, the loans made last July by the U.S. Treasury and Export Development Canada," said GM chief executive Ed Whitacre, speaking at a plant in Fairfax, Kan., where GM builds Chevrolet Malibu and Buick LaCrosse sedans.
On June 1, 2009 General Motors filed for Chapter 11 bankruptcy proceedings from which it emerged on July 10, 2009 in a reorganization in which a new entity acquired the most valuable assets. GM is temporarily majority owned by the United States Treasury and to a smaller extent the Canadian and Ontario governments,[clarification needed] with the US government investing a total of US$57.6 billion under the Troubled Asset Relief Program.
Originally posted by Aggie Man
So it's General Motors again, and not Government Motors? This is good news!
A bit of advice to our government:
Next time this happens, and there will be a next time, let them FAIL! Bailing them out did nothing but discourage the innovation of new technologies by upstart entrepreneurs; as it simply shows ,that no matter what, innovators can never have the opportunity to "put their foot on the throats" of big auto and big oil.
To GM: you folks had better start producing quality, efficient, affordable vehicles! All the while maintaining fair wages to your employs; as now, you have to answer to more than your share holders (at least I hope so).
Originally posted by tothetenthpower
Hmm, I might want some of the GM stock in the future.
Originally posted by FoxStriker
I remain cautious.... Didn't the gov't buy into GM as part owner?...
I would want to see were the money came from...
Because Sales or even the restructuring of GM through Bankruptcy Chapter 11 wouldn't have free'd enough money to pay back these loans.
SHANGHAI — US auto giant General Motors said Friday it sold a record 230,048 vehicles in China last month with demand strong for smaller, fuel-efficient cars.
The result marked a 67.9 percent year-on-year increase and was the 15th straight monthly sales record for GM in China, the world's biggest and fastest growing auto market.
Much of the improvement comes from GM slashing its debt load and workforce as part of its bankruptcy reorganization last year. But the automaker is a long way from regaining its old blue-chip status: It remains more than 70 percent government-owned and is still losing money — $3.4 billion in last year's fourth quarter alone. And while its car and truck sales are up so far this year, that's primarily due to lower-profit sales to car rental companies and other fleet buyers.
During the financial crisis that led to GM filing for bankruptcy protection last year, the automaker closed 14 factories and shed more than 65,000 blue-collar jobs in the U.S. through buyouts, early retirement offers and layoffs.
The automaker hopes to repay the remaining $45.3 billion to the U.S. government and $8.1 billion to Canada via a public stock offering, perhaps later this year. The U.S. government now owns 61 percent of the company and Canada owns roughly 12 percent.
Originally posted by Coolaid
If they cut them out then they could have made FREE cars for Americans. Imagine how that would have changed the auto industry.
But no that will never happen because that would be socialism and socialism is bad...