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No Need for More Govt Money, Says GM CEO

GM's CEO Fritz Henderson says the US-based manufacturer doesn't need more money from the government of the United States as the initial loan packages are sufficient for restructuring. In an interview for the Washington Post, Fritz Henderson said that General Motors is still hoping to repay its debts to the government by 2015 but the company is struggling to accelerate this and provide a return on the investment even sooner.

"The loans are due in 2015. We are looking at all kinds of ways that would actually accelerate that," he said.

"Then over time the question is, 'How do you realize a return on the equity?' That is a function of how does the company perform. If we get our job done, I think the government has an excellent chance of getting a return on its investment."


Henderson confirmed that General Motors is willing to continue its efforts in the green car market and revealed that there are a few steps to follow to make the business more profitable.

"The three things you need are battery costs coming down, motor costs coming down, control costs coming down. That means more people have to do it," he explained.

"The more companies that actually develop technologies around electric, the more the supply structure will develop, the better off we'll be. . . . We can't carry the load ourselves. GM can't. No way. We need to have more companies. We source most of these things. We don't do them. We're not in the chemistry business."

Chevrolet Volt is due to be released in 2010 and, according to GM's CEO, it might be offered with a price tag of around 40,000 US dollars.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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