Finally! I can go back to rooting for my old favorite. GM was able to pay back their loan from Uncle Sam nearly 5 years early.
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.
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.
This is great news. For one, it means that the company may be on its way to health and growth. Second, it means that the company can get out from under government influence.
There is still a long ways to go as GM works to get back to profitability and fully give the government all the money it owes:
GM still owes $45.3 billion to the U.S. and $8.1 billion to Canada, money it received in exchange for large stakes in the company. 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.
Hopefully GM can pull this off. My guess? Mr Whitacre knows how to get things done. If he “hopes” I bet it comes to pass.