GM Repays Loans in Full
(GM story updated with comments from the Treasury)
NEW YORK (TheStreet) -- During a visit to General Motors' Fairfax, Kansas, assembly plant on Wednesday, GM Chairman and CEO Ed Whitacre announced that the company is years ahead of schedule is repaying bailout loans received under the Troubled Asset Relief Program (TARP).
"I can't think of a better place to make the announcement that in the heartland of America" here at Fairfax, Whitacre said.
The Treasury said Wednesday that GM has paid the remaining $4.7 billion of the total $6.7 billion in debt owed to Treasury and that total TARP repayments now stand at $186 billion, well ahead of last fall's repayment projections for 2010.
|Ed Whitacre, CEO of GM|
Whitacre added that he was "pleased to announce GM has repaid in full," and with interest, the loans made last July by the U.S. Treasury and Export Development in Canada to help launch the new GM.
Whitacre said the company is about five years ahead of its original loan schedule, given that the automaker is selling the "best" cars and trucks GM has ever produced. Whitacre cited examples such as the soon-to-come Chevy Volt electric car and award-winning 2010 Chevy Malibu.He added that when GM accepted taxpayer loans, the company promised to restructure the company, reinvest in people and plants and bring "outstanding" vehicles to the market. "We are going to work to make GM a company that we can be proud of again and we are well on our way," Whitacre said. The Treasury said that after this repayment, the remaining Treasury stake in GM will consist of $2.1 billion in preferred stock and 60.8% of the common equity. -- Reported by Andrea Tse in New York
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV