Today General Motors’ CEO Ed Whitacre repaid the outstanding balance of the more than $8 billion it owned to the U.S. and Canadian governments, fulfilling his promise that the automaker would repay the loans by summer 2010. Both governments gave GM until the year 2015 to repay the loans.
In conjunction with announcing the repayment of loans to both the U.S. Treasury and Export Development Canada, GM also announced it would be sinking another $257 million into its Fairfax Kansas and Detroit Hamtramck production facilities.
“GM is able to repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse we build here in Fairfax,” said Whitacre. “We are now building some of the best cars, trucks, and crossovers we have ever built, and customers are taking note. Our dealers are increasing their sales, we are investing in our plants, and we are restoring and creating jobs.”
GM continues to revamp its lineup and rebuild its image following bankruptcy. Changes at the Detroit automaker have also included significant shuffling of top management. However, over all GM’s sales are strong and have increased by 36 percent through March compared to the same period last year. Many dealerships like Clovis GM have also seen incredible demand for new models, such as the Chevrolet equinox, GMC Terrain, and Buick LaCrosse.
“GM’s ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track. It is also an important first step toward allowing our stockholders to reduce their equity investments in GM,” said Whitacre. “We still have much hard work ahead of us, but we are making progress toward our vision of designing, building, and selling the world’s best vehicles.
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