GM pays back loan ahead of schedule

General Motors has made its final payment of 5.8 billion dollars to the U.S. Treasury and Export Development Canada. The announcement was made by General Motors Company Chairman and CEO Ed Whitacre that confirmed the ahead of schedule payback to both governments.

The announcement was made in a ceremony where GM presented its investments at GM’s Fairfax, Kansas, and Detroit Hamtramck assembly centers, worth 257 million dollars. Thanks to this investment Fairfax will be prepared to receive the production of the next generation of Chevrolet’s award-winning Malibu. So that Chevrolet can meet market demand Detroit Hamtramck will become a second source for 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,” 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.”

In order to launch the new GM, the company was provided loans of 8.4 billion dollars by the U.S., Canadian, and Ontario governments. General Motors completed the payback of these loans handing over the remaining 5.8 billion dollars (4.7 billion dollars to the U.S. Treasury and 1.1 billion Canadian dollars to Export Development Canada).

“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.

In the beginning of the year GM’s four brands have registered a raise in sales up to 36 percent, comparing to the same period of 2009. Thanks to the growing demand GM had already to increase its production and is making further investments in its plants in the United States and Canada. Since last July GM has announced investments worth more than 1.5 billion dollars which were able to restore or create more than 7,500 jobs.