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GM Pays Back 13% Of Government Loans

More from the tireless Obama Motors car salesmen of the Associated Press:

GM pays back government loans from US, Canada

By Tom Krisher, AP Auto Writer

April 21, 2010

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 will formally announce the loan paybacks Wednesday at the company’s Fairfax Assembly Plant in Kansas City, Kansas, where he will also announce 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.

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. The U.S. considered as a loan $6.7 billion of the aid, while the Canadian governments held $1.4 billion in loans.

The U.S. government payments, made Tuesday, came five years ahead of schedule, and Whitacre said they are a sign that the automaker is on its way toward reducing government ownership of the company. The payments on the Canadian loans were also made Tuesday.

GM hopes to repay the remaining $45.3 billion to the U.S. government and $8.1 billion to Canada, money it received in exchange for large stakes in the company.

“Hopes to repay” being the operative phrase here.

The U.S. government now owns 61 percent of the company and Canada owns roughly 12 percent. GM plans to repay both with a public stock offering, perhaps later this year.

Ah, so. GM intends to pay back the rest of the loan through money raised through an IPO. Or what is known as exploiting the stock market.

Not through selling cars, or anything mundane like that.

GM officials say the company’s public stock offering will take place when the markets and the company are ready. They will not predict how much of the remaining government debt will be repaid from the stock offering, but said it likely will take years for the governments to divest themselves fully.

Why should it take so long for the government to “divest”? They managed to invest in a matter of days.

The stock offering hinges on GM posting a profit, which Whitacre has said could come this year. GM lost $3.4 billion in the fourth quarter of 2009 on revenues of $32.3 billion.

Oops.

After the event at the Kansas City plant on Wednesday, Whitacre is scheduled to fly to Washington, where he will meet with House Speaker Nancy Pelosi and other lawmakers.

Hopefully, they will giver Mr. Whitacre more tips on how to run their company.

They are so all-knowing, you know.

This article was posted by Steve Gilbert on Wednesday, April 21st, 2010. Comments are currently closed.

9 Responses to “GM Pays Back 13% Of Government Loans”

  1. BigOil

    So GM lost 3.4 billion dollars in the fourth quarter, yet is able to repay 8.1 billion dollars on a loan. I guess the treasury must have loaned GM their currency printing machines so GM can print some money.

  2. proreason

    So, GM just repaid 8.1 billion dollars to itself. The criminal government owns it.

    In related news. proreason just repaid 8.1 trillion dollars to himself. Really, I did.

  3. Mithrandir

    The good news just can’t pour in fast enough for a Democrat president.

    Like Chris Matthew’s said, “It’s my job to make this presidency successful.” I am sure the liberal media feels the same way….

  4. captainfish

    BigOil, you are right. With revenues of $32 billion, and a loss of $3.4 billion, they were able to come up with an extra $8 billion?

    IPO?? Yeah, who wants to buy that stock….

  5. BillK

    I don’t know who’d want to buy it, but short it?

    You can sign me up for the latter. ;-)

  6. AcornsRNutz

    This is rich. The gov’t loaned them a pile of imaginary money, “deemed” only a percentage of it a loan, the rest they “bought” a controlling interest in the company with. Then they charged interest on the part they “deemed” a loan? IF a private company tried to buy out another company that way they would all be in prison. The reality is the government gave them monopoly money, took 61% of the company and then took back a small portion of the monopoly money, while the company lost 3.4 billion in real money, IE money that comes from investors and consumers. Due mostly to BS union contracts and gov’t regulations, every US car company loses money on every car they sell. THe unions refused to budge even though they knew they were strangling hte golden goose becasue they knew the gov’t would take up the slack and the legitimate money (the bondholders, management and consumers) would take the hit. Pretty brilliant manuevering, but disgusting.

  7. proreason

    Saw a GM ad last night in which the latest CEO claims that GM has repaid ALL of the loans.

    What the Marxists have discovered is that there need be no connection whatsoever between what they say and the truth.

    Sure, 20-30% of the country pays attention, and sees the obvious lies for what they are.

    But that is offset by 20-30% of the country that doesn’t even know the meaning of things like loans, debt, honor and honesty. They are the deadbeat layabouts that simply don’t care about anything but getting something for nothing. And there are a LOT of them. Whites as well as Blacks.

    That leaves 40-60% of the country in the middle. They are the people who swing elections. For the most part, they are honest people who want to do the right thing. But they are busy trying to make a living, raise families and just simply having a life. So they are very susceptable to propaganda, particularly when it comes from “authoritative” sources.

    That is why the Marxists dedicated decades to taking control of the media, the universities, Hollywood and the Democratic Party. We at S&L know all about this, but the 40-60% of the country busy making livings don’t know it and don’t believe it.

    Because of the unbelievable overreach of the Marxists, the middle is waking up to these realities, but the majority of the middle still believe that those four “instituions” are honest.

    Your future hinges on whether or not enough of those people can be awakened. If the Marxists had not been so desperate to cram in their agenda before November, there would be no chance at all. If they had been smarter, they would have boiled the lobster more slowly.

    But as it stands, the 20-30% with our eyes wide open are energized to the maximum. The vast middle is waking up and leans toward the truth, although they certainly aren’t aware enough to know that this has been a dream and plan of the Leftists for decades. Fortunately, the 20-30% something-for-nothing crowd isn’t very energized, because they haven’t got what they anticipated. But depend on this…..the criminals will ratchet up the bribery between now and November.

    The forecast looks good for Novemember, but the criminals still have a lot of tricks up their sleeves. They are willing to do anything. No lies are too outrageous. No crimes are too great. They will stage dozens of criminal charades between now and November.

    Now is not time to relax.

    Note: here’s a hotair link that proves the “repayment” of the “loans” is just a shell game: http://hotair.com/archives/201.....out-loans/ They “repaid” with more taxpayer money.

    • confucius

      I saw that ad yesterday too. The hotair.com article you link describes GM’s Enron-style accounting the way I understand it.

  8. proreason

    GM would never have considered such a shameless (and pitifully easy to discover) lie if it was not for the “leadership” of the fascists regime.

    They aren’t just corrupt themselves….they corrupt everything they touch.

    Witness…..GM, the CBO, every Democratic congress person, the SEC, many of the general officers in the military, most of the medical industries, the media, and the list goes on.

    Basically, the top leadership of this country are teaching the other instutitions that the end justifies the means, that there are no means too corrupt to use, no lie to grotesque to shout out, and that there is no morality except the butt of a gun.


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