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GM Pays off its Bailout Loans

Jetboogieman

Jetboogieman

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NEW YORK (CNNMoney.com) -- General Motors on Tuesday made a final payment of $5.8 billion to the U.S. and Canadian governments, paying off the last of its $6.7 billion in loans, a GM spokeswoman said.

The automaker is expected to officially announce the repayment Wednesday at an event at the Fairfax, Kan., plant where it builds Chevrolet Malibu and Buick LaCrosse sedans.

GM will also announce two big investments for production of the next-generation Malibu: $136 million in the Fairfax facility and $121 million in its Detroit-Hamtramck plant.

The Hamtramck plant is where GM has already begun manufacturing the Chevrolet Volt electric car.

GM wired $4.7 billion wired to the U.S. Treasury Department, completing payment of GM's $6.7 billion in federal loans. The company also sent $1.1 billion on Tuesday to Canada.
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GM pays off its Treasury Department loans - Apr. 21, 2010

Well. There yah go, they repaid it :)
 
Good for them. Now let's hope that the government gets out of GMs business and that the repaid money finds its way back to the taxpayers. Banks should give loans, not the government.
 
*cries at his obvious spelling mistake* PLEASE FORGIVE ME OH DEBATE POLITICS! I meant loans please believe me :)
 
digsbe said:
Good for them. Now let's hope that the government gets out of GMs business and that the repaid money finds its way back to the taxpayers. Banks should give loans, not the government.
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Yet the irony is that the government had to bail out the banks, too. :2razz:

Seems like GM is finally getting it's act together, though it seems like the banks are not.
 
Middleground said:
Yet the irony is that the government had to bail out the banks, too. :2razz:

Seems like GM is finally getting it's act together, though it seems like the banks are not.
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The banks are so screwed it's scary.
 
Jetboogieman said:
GM pays off its Treasury Department loans - Apr. 21, 2010

Well. There yah go, they repaid it :)
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Not really. Most of what we gave to GM is now called equity so let's not ahead of ourselves. Also there is a huge loan to GMAC which we were told had to be bailed out along with GM.

Very doubtful the GMAC loan will be fully repaid or that we will make money on the GM equity.

The only part of the deal which made the country money is the one Obama and team like to berate, the banks.
 
Middleground said:
Yet the irony is that the government had to bail out the banks, too. :2razz:

Seems like GM is finally getting it's act together, though it seems like the banks are not.
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They wouldn't have had to bail out the banks if they didn't force them to make bad loans anyway. Government was the problem for the banks and for the automakers (with parasitic unions and automobile regulations).
 
Wonder when Chrysler will be able to repay its bailout? They don't seem to be doing as well as GM.
 
Jetboogieman said:
GM pays off its Treasury Department loans - Apr. 21, 2010

Well. There yah go, they repaid it :)
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LOL Actually no they haven't repaid it.

The company got $50 billion from our government, and $10 billion more from Canada. They have paid the U.S. back $7 billion plus interest, as I understand it, including the latest payment of nearly $5 billion. So they say they paid us back.

Not quite: That still leaves $43 billion.

GM can say they paid us back because of the $50 billion in total support, only $7 billion was counted as a loan and the rest was traded for equity in the company that emerged from bankruptcy. But that is really an accounting trick so that GM doesn't have to pay interest on that money.

Wow.

You really thought that was true? :rofl:rofl:rofl


GM Still Owes Us - Forbes.com
 
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digsbe said:
Good for them. Now let's hope that the government gets out of GMs business and that the repaid money finds its way back to the taxpayers. Banks should give loans, not the government.
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The Guvment was not ever really in "GMs business " besides the initail spat with the Big guys at mother motors !!
 
mike2810 said:
Wonder when Chrysler will be able to repay its bailout? They don't seem to be doing as well as GM.
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MoPar will never be up in he top three ever again but I wish them well and hope that they will become profitable again.
 
texmaster said:
LOL Actually no they haven't repaid it.

The company got $50 billion from our government, and $10 billion more from Canada. They have paid the U.S. back $7 billion plus interest, as I understand it, including the latest payment of nearly $5 billion. So they say they paid us back.

Not quite: That still leaves $43 billion.

GM can say they paid us back because of the $50 billion in total support, only $7 billion was counted as a loan and the rest was traded for equity in the company that emerged from bankruptcy. But that is really an accounting trick so that GM doesn't have to pay interest on that money.

Wow.

You really thought that was true? :rofl:rofl:rofl


GM Still Owes Us - Forbes.com
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Ever the pessimest :mrgreen:

You are right. Don't shoot the messenger. :2wave:
 
It's nice to see good news once in a while.
 
texmaster said:
LOL Actually no they haven't repaid it.

The company got $50 billion from our government, and $10 billion more from Canada. They have paid the U.S. back $7 billion plus interest, as I understand it, including the latest payment of nearly $5 billion. So they say they paid us back.

Not quite: That still leaves $43 billion.

GM can say they paid us back because of the $50 billion in total support, only $7 billion was counted as a loan and the rest was traded for equity in the company that emerged from bankruptcy. But that is really an accounting trick so that GM doesn't have to pay interest on that money.

Wow.

You really thought that was true? :rofl:rofl:rofl


GM Still Owes Us - Forbes.com
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So you confirm that what he said, that GM payed off it's loans from the government of ~7 billion dollars, is factually correct.
 
Redress said:
So you confirm that what he said, that GM payed off it's loans from the government of ~7 billion dollars, is factually correct.
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No because they borrowed 43 Billion more.

They simply aren't paying interest on that loan.

You aren't going to pretend that 43 billion didn't come from the government are you?
 
texmaster said:
No because they borrowed 43 Billion more.

They simply aren't paying interest on that loan.

You aren't going to pretend that 43 billion didn't come from the government are you?
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Not sure if this is quite how it works, but if the government bought 43Billion of equity shares + a 7billion $ loan... technically they have repaid the loan, even though they still have to 'mature those equity shares... does that make sense??

Like you said about accounting tricks... same types of tricks that land those CEO's multi-million dollar bonuses even while they are going under.
 
Middleground said:
Yet the irony is that the government had to bail out the banks, too. :2razz:

Seems like GM is finally getting it's act together, though it seems like the banks are not.
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I suppose this is because those banks have to put up with those crocked unions.:( Wasn't that the reason GM was broke? Truth is, it wasn't the unions, or the sorry cars, or the management, that got GM in trouble, it was 10 years of republican policies that GM, along with most every other company, state, city, and person in the country couldn't take. Thank God their raign of terror is over. Thanks, Obama for saving an American icon. Do the best you can to pick up the rest of the pieces of America now that the Bulls are out of the china closet.
 
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F107HyperSabr said:
MoPar will never be up in he top three ever again but I wish them well and hope that they will become profitable again.
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Well, I will not ever buy another Chrysler product. Over the ten years I owned my Caravan, I put in 1/2 again the purchase price to maintenance and repair. It was built to break down.
 
washunut said:
Not really. Most of what we gave to GM is now called equity so let's not ahead of ourselves. Also there is a huge loan to GMAC which we were told had to be bailed out along with GM.

Very doubtful the GMAC loan will be fully repaid or that we will make money on the GM equity.

The only part of the deal which made the country money is the one Obama and team like to berate, the banks.
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What I'm wondering is if the US taxpayer will be picking up the tab for all the GM retirement pensions and other benefits. Any idea? It is my suspicion that this will be the case. It's the same thing that's breaking some of the states, and I think I remember hearing it was a major problem for GM months ago when all this started.
 
lizzie said:
What I'm wondering is if the US taxpayer will be picking up the tab for all the GM retirement pensions and other benefits. Any idea? It is my suspicion that this will be the case. It's the same thing that's breaking some of the states, and I think I remember hearing it was a major problem for GM months ago when all this started.
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You mean like the United Airline workers that got dumped on to the tax payers?
The truth is, I also receive a check from the tax payers by way of PGBC. I'm not a revious United airlines worker, but the company I worked and paid into a retirement fund got stolen by Reaganomics and I now get a retirement check from the government.
 
BmanMcfly said:
Not sure if this is quite how it works, but if the government bought 43Billion of equity shares + a 7billion $ loan... technically they have repaid the loan, even though they still have to 'mature those equity shares... does that make sense??

Like you said about accounting tricks... same types of tricks that land those CEO's multi-million dollar bonuses even while they are going under.
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It doesn't change the fact 43 billion dollars of taxpayer money is owed.

They are far from paying it back.

Anyone who sees this as the conclusion of their loan is a sucker.
 
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