General Motors pays back all of government bailout loans

Gm

Perhaps today GM no longer stands for Government Motors in the minds of some new car buyers.

The Detroit based auto maker has made a final payment of $5.8 billion to both American and Canadian tax payers which is the final repayment of the government loan the company borrowed when it went through bankruptcy last year.

"I am very pleased to announce that, as of today, General Motors has
repaid, in full and with interest, the loans made last July by the U.S.
Treasury and Export Development Canada," said GM chief executive Ed
Whitacre.

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According to CNN:

"On Tuesday night, the automaker wired $4.7 billion to the U.S. Treasury
Department and $1.1 billion to Canada."

GM also announced today that it will invest $257 million into two factories (GM’s Fairfax, Kansas, and Detroit Hamtramck assembly centers) to build the next generation of the Malibu.

"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,” added. “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.”

In total General Motors received $50 billion from the Federal government and in return the tax payer got $2 billion in preferred stock and a 61% stake in GM's privately held stock shares.

Taxpayer could recoup some or all of that investment with the sale of the stock.

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