GM to start loan repayment

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    General Motors is slowly becoming a healthy business again, Bloomberg reports. The car company that borrowed billions of dollars from the federal government before undergoing a mandatory restructuring by the Obama administration is optimistic about it’s quarterly earnings and will begin to repay its debt early.
     
    Reports from its third quarter show that the company, which manufactures brands like Chevrolet and Hummer, earned $3.3 billion.
     
    “We are ahead of the bankruptcy plan, not only in operations, but with some contingencies we provided for that we have been able to manage,” said the company’s CEO Fritz Henderson.

    In addition to its debt to the U.S., GM borrowed from the Canadian and Ontario governments, and will begin to repay all three this December with a first payment of $1.2 billion.The entire loan will be re-payed in July 2015.

     

    “This is as much about management confidence as it is about consumer confidence,” Fritz said. “I’ve been asked probably a hundred times, ‘When are you going to start paying back the taxpayer?’ The answer is now.”

     

     

    – Whitney Teal

     

     

     

    Here’s more:
    GM files for bankruptcy
    White House to cut executives’ salary

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