GM to Repay Loan in Full This Year

In a news which will somewhat upset those hoping GM will not be able to repay the loans it received last year from the US government, the company's (still) CEO Ed Whitacre announced yesterday the carmaker will make it's second quarterly loan payment to both the US Treasury and the Export Development Canada.

On March 31, GM will pay $1 billion to the US and $192 million to the Canadian fund. The amounts are equal to the ones paid by the carmaker in December 2009, when the first quarterly loan payment was made.

"In keeping with our commitments to the U.S. and Canadian and Ontario taxpayers, GM plans to make its second quarterly loan payment of approximately $1 billion to the U.S. Treasury and $192 million (USD) to Export Development Canada on March 31," Ed Whitacre said in a statement.

But that's not all. Apparently, things are going so well for the American carmaker that it will be able to repay the loan, in full, by June this year, some five years ahead of schedule.

Last year, GM received $52 billion from the US government to survive the bankruptcy process. Out of that amount, $45.3 billion was converted into equity as the government got 61 percent of the car manufacturer.

"While we have more work to do, GM is building high-quality, award-winning vehicles, our direction is clear and our plan is working. Given the progress the company is making, GM has every confidence that the remainder of the loans will be paid in full by June 2010; five years ahead of schedule," the CEO concluded.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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