GM "Repays" Gov Loan 5 Years Ahead of Schedule
04-21-2010, 11:47 AM
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GM "Repays" Gov Loan 5 Years Ahead of Schedule GM Pays Back Government Loans in Full, Announces Investment in Fairfax, Detroit Hamtramck
The announcement came at a ceremony here to highlight an investment of $257 million at GM's Fairfax, Kansas, and Detroit Hamtramck assembly centers. The investment will prepare Fairfax to build the next generation of Chevrolet's award-winning Malibu, and make Detroit Hamtramck a second source for Malibu, ensuring that Chevrolet can meet market demand for this popular mid-size sedan.
"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."
The U.S., Canadian, and Ontario governments, as part of the launch of the new GM, provided loans of $8.4 billion and took equity stakes in the new company. Today's payment of $5.8 billion ($4.7 billion to the U.S. Treasury and $C1.1 billion to Export Development Canada) completes the payback of these loans.
"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.
"We appreciate the support the taxpayers have given GM, and our great new products are tangible results of that support."
Strong sales support American manufacturing, jobs
Strong sales of new Chevrolet, Buick, GMC, and Cadillac products are fueling a steady increase in production as GM works to meet growing customer demand.
Sales for GM's four brands are up 36 percent through March versus the same period in 2009, and many newly introduced cars and crossovers – including Chevy Equinox, Camaro and Traverse; GMC Terrain and Acadia; Buick LaCrosse; and Cadillac SRX – remain in short supply at GM dealers.
The Fairfax plant currently builds two of GM's strongest selling cars, the Chevy Malibu and Buick LaCrosse. For the first three months of this year, GM's U.S. dealers delivered more than 49,000 Malibus and 14,000 LaCrosses, representing a 58 percent increase over the same period last year. In response to this strong demand, Fairfax in February added a third shift of approximately 1,050 jobs, bringing total employment at the plant to more than 3,800.
Fairfax will become the primary source for the next generation of the Malibu. Detroit Hamtramck, which builds the Buick Lucerne and Cadillac DTS, will be equipped to build the Malibu as well, ensuring that Chevrolet can meet market demand.
Detroit Hamtramck will also build the Chevy Volt electric vehicle with extended range, which launches this year. On March 31, the plant celebrated a major milestone, the building of the first pre-production Volt on the regular assembly line.
The Malibu-related investments of $136 million in Fairfax and $121 million in Detroit Hamtramck will include facilities, machinery and equipment, and tools.
Since the launch of the new GM last July, the company has announced investments of more than $1.5 billion at 20 facilities in the U.S. and Canada. These investments restored or created more than 7,500 jobs, and they demonstrate a strong commitment to GM's future and to the United States and Canada.
- GM pays back its loans from U.S. Treasury and Export Development Canada
- Strong sales, confident outlook enable payback ahead of schedule
- $257 million investment for Malibu at Fairfax, Kansas, and Detroit Hamtramck
The announcement came at a ceremony here to highlight an investment of $257 million at GM's Fairfax, Kansas, and Detroit Hamtramck assembly centers. The investment will prepare Fairfax to build the next generation of Chevrolet's award-winning Malibu, and make Detroit Hamtramck a second source for Malibu, ensuring that Chevrolet can meet market demand for this popular mid-size sedan.
"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."
The U.S., Canadian, and Ontario governments, as part of the launch of the new GM, provided loans of $8.4 billion and took equity stakes in the new company. Today's payment of $5.8 billion ($4.7 billion to the U.S. Treasury and $C1.1 billion to Export Development Canada) completes the payback of these loans.
"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.
"We appreciate the support the taxpayers have given GM, and our great new products are tangible results of that support."
Strong sales support American manufacturing, jobs
Strong sales of new Chevrolet, Buick, GMC, and Cadillac products are fueling a steady increase in production as GM works to meet growing customer demand.
Sales for GM's four brands are up 36 percent through March versus the same period in 2009, and many newly introduced cars and crossovers – including Chevy Equinox, Camaro and Traverse; GMC Terrain and Acadia; Buick LaCrosse; and Cadillac SRX – remain in short supply at GM dealers.
The Fairfax plant currently builds two of GM's strongest selling cars, the Chevy Malibu and Buick LaCrosse. For the first three months of this year, GM's U.S. dealers delivered more than 49,000 Malibus and 14,000 LaCrosses, representing a 58 percent increase over the same period last year. In response to this strong demand, Fairfax in February added a third shift of approximately 1,050 jobs, bringing total employment at the plant to more than 3,800.
Fairfax will become the primary source for the next generation of the Malibu. Detroit Hamtramck, which builds the Buick Lucerne and Cadillac DTS, will be equipped to build the Malibu as well, ensuring that Chevrolet can meet market demand.
Detroit Hamtramck will also build the Chevy Volt electric vehicle with extended range, which launches this year. On March 31, the plant celebrated a major milestone, the building of the first pre-production Volt on the regular assembly line.
The Malibu-related investments of $136 million in Fairfax and $121 million in Detroit Hamtramck will include facilities, machinery and equipment, and tools.
Since the launch of the new GM last July, the company has announced investments of more than $1.5 billion at 20 facilities in the U.S. and Canada. These investments restored or created more than 7,500 jobs, and they demonstrate a strong commitment to GM's future and to the United States and Canada.
04-21-2010, 12:22 PM
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04-21-2010, 01:38 PM
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Douchebag On The Tree
Trending Topics
04-21-2010, 07:02 PM
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Douchebag On The Tree
Yes, even for this to happen there would have to be a lot of consumer support before the money is invested. Even then I see it being a stretch to ever come back as the niche models they had proposed early in the axing plans.
04-21-2010, 09:48 PM
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04-22-2010, 12:23 AM
#16
Yeah, ya think there's any chance they'll give me back any of what I'd lost on those 16000 shares I'd bought just months before the 
really hit the fan? 
When you take a mortgage out for a home, the mortgage company/bank then owns a portion (or all) of your home, correct?
Now, when you pay off your mortgage entirely do they still own that portion?
really hit the fan? When you take a mortgage out for a home, the mortgage company/bank then owns a portion (or all) of your home, correct?Now, when you pay off your mortgage entirely do they still own that portion?
04-22-2010, 03:16 AM
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I was wondering about the other 43 billion and change but it's good to see that they are seemingly in the black again.
Trishield, can you explain a bit more on the IPO and what happens after they establish one?
Trishield, can you explain a bit more on the IPO and what happens after they establish one?
04-22-2010, 12:55 PM
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It was a joke but in your example the homeowner would also be the government.
04-22-2010, 12:59 PM
#19
04-22-2010, 05:44 PM
#20
Neil Barofsky
"They didn't earn and extra 4 1/2 billion dollars, it's another pool of tarp money".
"They didn't earn and extra 4 1/2 billion dollars, it's another pool of tarp money".
Great business model.
Looks like they can afford more union benifits too.
