The Facts on GM's recent Loan Repayment

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On Wednesday, April 21, 2010, GM Motor Company returned $4.7billion to the U.S government and $1.1 billion the Canadian and Ontario governments. The car company filed for bankruptcy protection last year in order to shed liabilities and focus on becoming more agile. Under the original repayment plan, the first payment was not due until July 2015. The U.S. Treasury, Export Development Canada and UAW still own a significant portion of General Motor’s equity, but the loan repayment is a key milestone. The repayments were a result of GM’s enhanced performance, with Mr. Whitacre, GM’s chairman, recently hinting that its first quarter-results would be “strong”. Over the past nine months, GM has invested $1.5B dollars in 20 facilities and created or restored 7,500 jobs in the US and Canada.

GM was able to payback the loan due to consumer’s response to recent product launches and the overall improvement of sales. Florida auto companies have seen a significant increase in sales with at least a 20% increase compared to last year. U.S. sales performance is tracking upward, indicating growing consumer receptivity to returning to GM showrooms. Make sure to visit your local GM Miami dealer to see what new vehicles are in store for you.