GM on Track to Pay Govt. Loans Before June

One of the most important tasks for General Motors is now to pay back the government loans it received in both the United States and Canada, while forcing to re-become competitive and refresh the product lineup. GM CEO Ed Whitacre says the US-based manufacturer is still on track to pay the $8 billion loan to the two governments before the June deadline.

"I believe we're going to beat that date," Whitacre said, according to a Reuters report. "We have restructured and the progress that we've made, I believe, is sustainable," he said. "We're not being crushed under a mountain of debt. We have a cost structure that works."

Whitacre, who has been named permanent CEO of General Motors after Fritz Henderson resigned, said at the time of his investment that he's confident the company has the ability to pay back the loans by June.

“Having spent the past few months learning the business, meeting with our employees, customers and dealers, and working with the GM leadership team, I was both honored and pleased to accept this role. This is a great company with an even greater future, and I want to be part of it."

“We’ve made significant progress in the past couple of months, so much so that I can confirm with certainty that we will pay back in full the U.S. Treasury and Canadian and Ontario government loans by June,” Whitacre said. “This represents a significant milestone in our journey back to being a profitable and viable company.”