GM Pays Off Debt to U.S

GM Pays Off Debt to U.S.

DETROIT – General Motors Co. has repaid the $8.1 billion in loans it got from the U.S. and Canadian governments, a move its CEO says is a sign automaker is on the road to recovery.
GM CEO Whitacre formally announced the loan paybacks Wednesday at the company’s Fairfax Assembly Plant in Kansas City, Kansas, where he also announced that GM is investing $257 million in that factory and the Detroit-Hamtramck plant, both of which will build the next generation of the midsize [FONT=arial]Chevrolet [/FONT][FONT=arial]Malibu.[/FONT]
GM got a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments as it went through bankruptcy protection last year. The U.S. considered as a loan $6.7 billion of the aid, while the Canadian governments held $1.4 billion in loans.
The U.S. government payments, made Tuesday, came five years ahead of schedule, and Whitacre said they are a sign that the automaker is on its way toward reducing government ownership of the company. The payments on the Canadian loans were also made Tuesday.

GM still owes $45.3 billion to the U.S. and $8.1 billion to Canada, money it received in exchange for large stakes in the company. The U.S. government now owns 61 percent of the company and Canada owns roughly 12 percent. GM plans to repay both with a public stock offering, perhaps later this year…

Everything appears to be going according to plan. From bankrupt to handing over billions of dollars, soon to be followed by a stock offering and the Volt goes on sale in November. Perhaps someone found the money behind the copier? :slight_smile:

God bless,

Yep. They made the repayment money the same way the Fed did before they loaned it - out of thin air!

Nah! They had just used the copier earlier to copy more money. The bills behind the copier were the ones they forgot about…:wink:

What I’ve heard in the last week is this is all smoke and mirrors. They took tax money that was set aside to pay off this loan. So they took tax money to pay off tax money that was loaned to them.

They didn’t pay off a thing the American people still own 61% of GM Canada 12%.

Makes you wonder who told them to release this story? :hmmm:

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