News: GM completes repayment of government loans

[catbert]

On Wednesday General Motors Chairman and CEO Ed Whitacre is expected to travel to the company's Fairfax assembly complex in Kansas City, KS to announce two important issues for the automaker. On the top of Whitacre's agenda is the announcement that GM will complete the payback of all of the company's $6.7 Billion in loans to the United States government. Additionally, GMI has been told Whitacre will be announcing an expansion to the Fairfax facility.

Whitacre has been vocal that GM would be able to pay back the total of the loans way ahead of the projected 2011 payout time frame; however the earliest he was stating publicly was June. According to GMI sources, the actual payment of the final $4.7 Billion to the U.S. government will actually be made late tonight, with the announcement not happening until Wednesday at Fairfax. GM will also payback the remaining loans to the Canadian and Ontario governments. The total payback of both U.S. and Canadian governments is $5.784 Billion.

According to GMI sources, Whitacre will also announce an investment into the Fairfax, Kansas City assembly plant. The investment will likely call for an expansion of the facility and the creation of new jobs at Fairfax. The plant currently builds the Chevrolet Malibu and Buick LaCrosse. The investment is rumored to be in reference to the next-generation Malibu, which is likely to be built at Fairfax and GM's Detroit-Hamtramck plant.

 

[LLC5]

Which begs the question(s): where did they get the money, and why couldn't they have gotten it before the hand out?

 

[jrose7004]

Another question for me is will the Federal Government get their nose out of GM business?

 

[catbert]

Which begs the question(s): where did they get the money, and why couldn't they have gotten it before the hand out?

Probably because they are selling cars now, and they weren't back then. Just a guess.

 

[LLC5]

Are they really selling THAT many more cars now? $5.784 billion in profit would have to be a lot of vehicles. Maybe.

Yeah I agree, getting the Fed's out of GM will be a huge step forward.

 

[njlouc]

Here is a little more than I know:
1. When you go bankrupt you stiff your creditors - a great savings.hnoes
2. Also they lost a huge ton of cash in the non-car (money) business, which they either sold or re-organized.
3. Then consider that they laid off MANY of very good people who now work for competitors and who will NEVER buy GM!! A big savings.

BUT they will make a slow comeback (until) they come out with the loser Volt!!
A question - now that they paid back the money (actually all but 50 billion) will Obama still back the warranty????
Maybe they should have waited until the Volt comes out. that little gem will be a warranty nightmare.

 

[Toms007]

Are they really selling THAT many more cars now? $5.784 billion in profit would have to be a lot of vehicles. Maybe.

Yeah I agree, getting the Fed's out of GM will be a huge step forward.

Here is a little more than I know:
1. When you go bankrupt you stiff your creditors - a great savings.hnoes
2. Also they lost a huge ton of cash in the non-car (money) business, which they either sold or re-organized.
3. Then consider that they laid off MANY of very good people who now work for competitors and who will NEVER buy GM!! A big savings.

BUT they will make a slow comeback (until) they come out with the loser Volt!!
A question - now that they paid back the money (actually all but 50 billion) will Obama still back the warranty????
Maybe they should have waited until the Volt comes out. that little gem will be a warranty nightmare.

And how much did they bring in by selling off the subsidiaries? I hope that this is a good thing, and a turn around for them.

 

[catbert]

Everyone that hates GM, and what it stands for should consider selling their Vette and buy a Mustang or Toyota or a product whatever car company they deem worthy of their support. I'll stick with GM for now.

 

[Mike G]

C'Mon GM!!!

There seems to be a lot of GM bashing out there, no surprise for sure but they got to make the comeback, at least for the sake of the Vette, the small-block Chevy and the great American cars that we know they're capable of making. I sure wish they'd come out with some REAL improvements like rear-wheel drive Impala with the 375 hp LS3, RWD Monte Carlo with 400 hp LS3, Impala SS with 420 hp LS7 and Monte SS with the standard 500hp LS7. Z/28 Camaro - 500 hp, no less (with DIET PLEASE!). Remake the Malibu into a real car, RWD, 350 hp V6 and make damn sure that thing called the Cruze is a GOOD CAR! Get off this crap with the family bus and start making real and desireable cars! Need to make CAFE numbers? Eliminate that USELESS Avalanche, that'll do it all by itself but they can take that waste-mommywagon Blazer with it.
Make the cars that people truely want, not cars that the car companies SAY they want to buy.
ah well, so much for the rocket science... :eyerole Come on GM!!

 

[Edmond]

Which begs the question(s): where did they get the money, and why couldn't they have gotten it before the hand out?

Easy, they got the money from us:

GM Money Game | Jamie Dupree’s Washington Insider

 

[Remo]

Wait Just A Minute

Geez....with GM paying back the Goverment and the banks beginning to do the same...what will we have to bitch about? Oh yea I almost forgot...the healthcare plan.
Remo:cool

 

[LLC5]

Easy, they got the money from us:

GM Money Game | Jamie Dupree’s Washington Insider

Thanks. I guess that about sums it up. I thought it sounded a little too magical, but I was hoping. Oh well.

 

[killain]

Probably because they are selling cars now, and they weren't back then. Just a guess.

I personally have a deep dislike for the UAW, but it is so IMPORTANT that General Motors becomes whole and operating in a financially stable environment. I don't know how many of you have stopped in to your local GM dealers, but I have and GM has some really exciting cars, (I love to have a new Buick Lacrosse, This is really a well made automobile !)

And the company is now FINALLY starting to build the huge sales autos, Like police cars, hybrid's that the government and post office will be buying and taxi's. There is a huge amount of money in fleet sales. It good for the workers, the economy. If you hate General Motors, then your just giving the imports more credit than they deserve. Now that the UAW is part of upper management, going on strike is only like putting a gun to their collective heads. They ARE part of the operation, No work, No paychecks and they now have the ability to review the sales information and see what is in their best interest. We should all support the new GM, If the Corvette is going to see a C7 model or even a 60th Anniversary edition model, then General Motors has to be financial stable.

It's a new day, a new era, we Americans need to support each other. And our core business companies, Boeing, General Electric, General Motors !