GM Repays Remaining Gov Loan 5 Years Ahead of Schedule

Discussion in 'OT Driven' started by TriShield, Apr 21, 2010.

  1. TriShield

    TriShield Super Moderator® Super Moderator

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    GM Pays Back Government Loans in Full, Announces Investment in Fairfax, Detroit Hamtramck

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    • GM pays back its loans from U.S. Treasury and Export Development Canada
    • Strong sales, confident outlook enable payback ahead of schedule
    • $257 million investment for Malibu at Fairfax, Kansas, and Detroit Hamtramck
    KANSAS CITY, KANSAS – General Motors Company Chairman and CEO Ed Whitacre today announced that GM has made its final payment of $5.8 billion to the U.S. Treasury and Export Development Canada, paying back its government loans in full, ahead of schedule.

    The announcement came at a ceremony here to highlight an investment of $257 million at GM's Fairfax, Kansas, and Detroit Hamtramck assembly centers. The investment will prepare Fairfax to build the next generation of Chevrolet's award-winning Malibu, and make Detroit Hamtramck a second source for Malibu, ensuring that Chevrolet can meet market demand for this popular mid-size sedan.

    "GM is able to repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse we build here in Fairfax," said Whitacre. "We are now building some of the best cars, trucks, and crossovers we have ever built, and customers are taking note. Our dealers are increasing their sales, we are investing in our plants, and we are restoring and creating jobs."

    The U.S., Canadian, and Ontario governments, as part of the launch of the new GM, provided loans of $8.4 billion and took equity stakes in the new company. Today's payment of $5.8 billion ($4.7 billion to the U.S. Treasury and $C1.1 billion to Export Development Canada) completes the payback of these loans.

    "GM's ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track. It is also an important first step toward allowing our stockholders to reduce their equity investments in GM," said Whitacre. "We still have much hard work ahead of us, but we are making progress toward our vision of designing, building, and selling the world's best vehicles.

    "We appreciate the support the taxpayers have given GM, and our great new products are tangible results of that support."

    Strong sales support American manufacturing, jobs

    Strong sales of new Chevrolet, Buick, GMC, and Cadillac products are fueling a steady increase in production as GM works to meet growing customer demand.

    Sales for GM's four brands are up 36 percent through March versus the same period in 2009, and many newly introduced cars and crossovers – including Chevy Equinox, Camaro and Traverse; GMC Terrain and Acadia; Buick LaCrosse; and Cadillac SRX – remain in short supply at GM dealers.

    The Fairfax plant currently builds two of GM's strongest selling cars, the Chevy Malibu and Buick LaCrosse. For the first three months of this year, GM's U.S. dealers delivered more than 49,000 Malibus and 14,000 LaCrosses, representing a 58 percent increase over the same period last year. In response to this strong demand, Fairfax in February added a third shift of approximately 1,050 jobs, bringing total employment at the plant to more than 3,800.

    Fairfax will become the primary source for the next generation of the Malibu. Detroit Hamtramck, which builds the Buick Lucerne and Cadillac DTS, will be equipped to build the Malibu as well, ensuring that Chevrolet can meet market demand.

    Detroit Hamtramck will also build the Chevy Volt electric vehicle with extended range, which launches this year. On March 31, the plant celebrated a major milestone, the building of the first pre-production Volt on the regular assembly line.

    The Malibu-related investments of $136 million in Fairfax and $121 million in Detroit Hamtramck will include facilities, machinery and equipment, and tools.

    Since the launch of the new GM last July, the company has announced investments of more than $1.5 billion at 20 facilities in the U.S. and Canada. These investments restored or created more than 7,500 jobs, and they demonstrate a strong commitment to GM's future and to the United States and Canada.

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  2. BlazinBlazer Guy

    BlazinBlazer Guy Witness to The De-Evolution of Mankind.

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  3. carlos64030

    carlos64030 New Member

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    Now that's some good news to hear. I hope GM continues to do well.
     
  4. caddymac

    caddymac New Member

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    The question is, where did GM find $8.4Bil?

    At least with the government out of the loop the UAW won't have as much power.
     
  5. art_VW_shark

    art_VW_shark OT Supporter

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    have to make the old joke
    CEO Barack Obama unavailable for further comments.
     
  6. CJPA

    CJPA New Member

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    Wow, really? :bowdown:

    And yes, where the fuck did they get the money from? :confused:

    They can't have sold THAT many cars.
     
  7. T0nyGTSt

    T0nyGTSt New Member

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    For starters, $6.7 billion doesn’t begin to scratch the surface of what G.M. actually owes us. Over the past 12 months, the Treasury has given it some $52 billion in the form of cash, loans and the purchase of that 60 percent of the company’s post-bankruptcy equity. And that number fails to take into account the two bailouts of G.M.’s former lending arm, GMAC… Moreover, G.M. is not, in the strictest sense, paying back taxpayers at all. Rather, it is refunding $6.7 billion of an $18 billion escrow account that was given to it by the government when it emerged from bankruptcy.
     
  8. T0nyGTSt

    T0nyGTSt New Member

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  9. Mitchj

    Mitchj OT Supporter

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    correct tony, GM has repaid its ~10 billion in 'loans' but it fails to mention that the american government has paid 50 billion in share equity, GM will never have to repay this.
     
  10. TriShield

    TriShield Super Moderator® Super Moderator

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    Until IPO time comes around and the government sells it's shares (if it wants to by then).
     
  11. Mitchj

    Mitchj OT Supporter

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    i dont even care about the GM financials, what they need to do is focus on making good cars, thats were they fell down
     
  12. BlazinBlazer Guy

    BlazinBlazer Guy Witness to The De-Evolution of Mankind.

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    By all indications, the IPO will happen some time during 2010... so we'll see!
     
  13. CJPA

    CJPA New Member

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    OK, so it is all smoke and mirrors :sad2:
     
  14. Mitchj

    Mitchj OT Supporter

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    im pretty sure GM isnt even posting profits yet
     
  15. T0nyGTSt

    T0nyGTSt New Member

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    i don't care about GM

    or Ford

    the reality is Ford are in just as bad shape except they just owe someone else besides the US govt.

    and Chrysler... oh man let's not even go there
     
  16. Mitchj

    Mitchj OT Supporter

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    you obviously dont care about good cars than, go back to sackriding Japanese manufacturers that make bland econobox's please.

    Ford has one of the most promising lineups out of any mainstream manufacturer
     
  17. TriShield

    TriShield Super Moderator® Super Moderator

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    GM and Ford are pretty much the same in that respect.
     
  18. TriShield

    TriShield Super Moderator® Super Moderator

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    Probably before the midterm elections.
     
  19. Mitchj

    Mitchj OT Supporter

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    GM is doing real exciting things (like the volt)

    ford is getting the main aspects right

    both are pioneering ahead of the Japanese and Germans, and both are offering class leading cars.

    Hate on the new Cruze all you want, but compared to the bland, frankly shitehouse offerings from Nissan and Toyota (versa and corolla) it is class leading.
     
  20. MartyFukstein

    MartyFukstein OT Supporter

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    Every Volt will lose money. In fact, the taxpayers' money.

    And yes, GM repaid the $6 billion loan using funds from the $60 billion it received in the bailout. Don't be fooled...it's just propaganda from GM and the govt.
     
  21. BlazinBlazer Guy

    BlazinBlazer Guy Witness to The De-Evolution of Mankind.

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  22. RedWings

    RedWings New Member

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  23. art_VW_shark

    art_VW_shark OT Supporter

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    whats new
    :rofl:
     

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