GM officially repays US and Canada $5.8 billion –

As was rumored yesterday, General Motors CEO Ed Whitacre revealed that the company has officially repaid its outstanding debt to the US and Canadian governments, worth $5.8 billion.

The company has refunded, through this measure, the amount of money the two governments gave to bail it out, back in the sumer of last year.

“Our ability to pay back these loans less than a year after emerging from bankruptcy is a sign that our plan for building a new GM is working,” said Whitacre to the Wall Street Journal.

The main goal now for the company is to go public, so that the US government can get back some of the $50 billion it currently has in plain and preferred stocks, totaling 60.8%. This event is likely to take place later this year, but given the eagerness of GM to prove that it’s on the right track, we might see it sooner.

GM definitely won some major confidence points from both the average consumer and the US and Canadian governments for paying back the money ahead of schedule. Now, it needs to get its act together and become the automaker it once was.

Source: Automotive News

Post tags: Tags: bailout, canada, ed whitacre, General Motors, gm, usa