GM pays back debt to US/Canadian governments

[Azure]

DETROIT -- General Motors Co. has repaid the $8.1 billion in loans it got from the U.S. and Canadian governments, a move its CEO says is a sign automaker is on the road to recovery.

GM CEO Whitacre formally announced the loan paybacks Wednesday at the company's Fairfax Assembly Plant in Kansas City, Kansas, where he also announced that GM is investing $257 million in that factory and the Detroit-Hamtramck plant, both of which will build the next generation of the midsize Chevrolet Malibu.

http://www.foxnews.com/leisure/2010/04/21/gm-pays-debt/

[CrusaderPi]

I don't think I understand how money works anymore. How did they go from being totally broke and only have enough cash and credit to stay in operation for another X months to being able to burn 8.1B in the space of a couple of years.

Edit: But good news is good news, I guess.

[Potty]

GM got a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments as it went through bankruptcy protection last year. At first the entire amount of U.S. aid was considered a loan as the government tried to keep GM from going under and pulling the fragile economy into a depression.


But during bankruptcy, the U.S. government reduced the loan portion to $6.7 billion and converted the rest to company stock, while the Canadian government held $1.4 billion in loans. Those loans were repaid Tuesday, five years ahead of schedule.

http://www.google.com/hostednews/ap/...7WW_QD9F7LCVG2

Only $1.4 of the $9.5 billion in aid provided by the Canadian government was classified as a "loan" and it was only this portion that has so far been paid back.

The automaker hopes to begin repaying the remaining $45.3 billion to the U.S. government and $8.1 billion to Canada via a public stock offering, perhaps later this year. The U.S. government now owns 61 percent of the company and Canada owns roughly 12 percent.

[3 Justin 3]

That is why Canada now owns Opel.

[BlackArcher101]

Alright, who loaned them money?

[Hack&Lube]

I wish I could get a "loan" from the government and only have to pay back 10% of it and consider it paid off!

Also, why aren't the banks paying back the American people for that stupid buyout

[getbak]

Originally Posted by 3 Justin 3

That is why Canada now owns Opel.

What's the current status of Opel? Didn't the Magna deal fall through?

[PIMking]

I will never buy a GM vehicle because of this. Ford was smart enough to change their business policies to stay afloat.

[3 Justin 3]

Originally Posted by getbak

What's the current status of Opel? Didn't the Magna deal fall through?

I think so (after reading some reports from Google). I think they remain in Europe.

[Tyler]

Originally Posted by Hack&Lube

Also, why aren't the banks paying back the American people for that stupid buyout

No one is making them?

[chemgear]

[stampsx2]

Originally Posted by PIMking

I will never buy a GM vehicle because of this. Ford was smart enough to change their business policies to stay afloat.

Agree 100%

[Hack&Lube]

Originally Posted by 3 Justin 3

That is why Canada now owns Opel.

No. GM still owns Opel. They decided not to sell.

[valo403]

Originally Posted by Hack&Lube

I wish I could get a "loan" from the government and only have to pay back 10% of it and consider it paid off!

Also, why aren't the banks paying back the American people for that stupid buyout

they are

[valo403]

Originally Posted by CrusaderPi

I don't think I understand how money works anymore. How did they go from being totally broke and only have enough cash and credit to stay in operation for another X months to being able to burn 8.1B in the space of a couple of years.

Edit: But good news is good news, I guess.

A lot of the funds in the bailout were used to shore up short term liquidity issues. Most massive companies have very little cash on hand so when the liquidity markets all but dried up meeting short term payment schedules became near impossible. There are definitely long term issues as well, but the bailout prevented a domino effect that would have seen mass bankruptcy across the nation.

[Azure]

Ford didn't technically take bailout money so that picture is wrong.

[chemgear]

Hehe, and technically they haven't paid everything back - not even close.

The rest of the money isn't considered/called a "loan" (useless stock perhaps?) Works out to be about $150 for every man, woman and child in North America still outstanding I think.

Which is pretty insane.

[Locke]

This is pure shellgame BS. Its a third rate PR stunt.

[3 Justin 3]

Originally Posted by Hack&Lube

No. GM still owns Opel. They decided not to sell.

We paid $9B, but then 1.9B stayed as loans and the rest went to stocks, etc. like that, and part of that was Opel.

[Sluggo]

It's amazing how quickly multinationals are able to go from paying taxes like respectable citizens to moochers extorting politicians with their jobclout.