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GM to start paying back government loans

Discussion in 'Business & Economics' started by top gun, Nov 16, 2009.

  1. top gun New Member

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    Save a major US manufacture and 10's of thousands... if you count related businesses 100's of thousands of American jobs.

    I LOVE AMERICA!!!

    GM Plans to Pay Back $6.7B Loan
    By Joseph Woelfel 11/16/09

    DETROIT -- General Motors plans to begin paying back a $6.7 billion loan it owes the U.S. government starting late this year and could repay the entire loan by the middle of 2011, according to published reports.
    The U.S. automaker is expected to announce the repayment play Monday when it releases its preliminary third-quarter earnings, AP and the Wall Street Journal report.
    Under the plan to pay back the $6.7 billion, GM will make quarterly payments of $1 billion to the U.S. government and $200 million to the Canadian government beginning in late 2009. GM would be on track to pay off the $6.7 billion U.S. debt and a $1.4 billion debt to Canada by the middle of 2011, ahead of a mid-2015 deadline to repay the U.S. and Canadian governments, AP reports.

    GM is able to make the payments ahead of schedule because it performed better than expected during its 40-day stay in bankruptcy and the company's sales and overall performance since then have been modestly better than expected, AP says, citing a person familiar with the matter.
    top gun, Nov 16, 2009
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  2. PLC1 Super Moderator

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    Well, it is a start, maybe:

    GM Board ‘Fully Behind’ CEO, May Start U.S. Aid Payback in 2009

    "May begin to pay back some of the loans" is a lot better than "definitely won't begin to pay back loans any time in the near future".

    If their products were as good as say, for example, the Honda Accord, the Toyota Camry, or the Ford focus, maybe they wouldn't have needed a bailout in the first place.
    PLC1, Nov 17, 2009
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  3. ASPCA4EVER Banned

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    Hey...ASUR, are you lurking around...strolling by, come on in and drop a line on this topic;)

    Good Point PLC1, and if the OBAMA BASHERS would care to step up to the plate and own up to the fact that not all automakers have been making good financial plans then they wouldn't be in this 'HAND OUT MODE' to start with. But the BLAME GAME just continues and that is pathetic!
    ASPCA4EVER, Nov 17, 2009
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  4. BigRob Super Moderator

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    Paying back $7 billion is still well short of the almost $80 billion they were given if I remember correctly. It is good they are paying it back, but in my opinion it would have been better to let the company fail and reorganize on its own. Wasn't the whole idea of these "loans" to prevent bankruptcy? Then they went bankrupt anyway. Had they just gone bankrupt to begin with, we would not need to be getting paid back, and there could be a leaner GM in place too.
    BigRob, Nov 17, 2009
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