GM will pay back $8 billion in debt to the U.S. and Canada before June

Article by Christian Andrei, on August 26, 2010

General Motors Co. is expected to pay back about $8 billion in debt to the United States and Canada earlier than expected. CEO Ed Whitacre said that GM is also seen to go public in a way that would allow taxpayers to make a profit on the bailout.

GM's financial targets are certainly more aggressive than what it had previously announced.But then again, Whitacre is looking at the steady decline in market share and is now doing what he can to boost sales.

Whitacre took over as CEO last December when former CEO Fritz Henderson resigned due to pressure from the board. Whitacre recognized that being at the top is proving to be more difficult than he had expected, especially with the hurdles in reforming a bureaucratic corporate culture.

Whitacre said that after the company has gotten through several major disruptions, the responsibility of motivating people lies in his hands. He talked about the baggage that GM is carrying as well as the changes that he wants to implement. Last December, 

Whitacre said that GM will pay back government loans extended to finance its restructuring in bankruptcy by June. Last Wednesday, Whitacre claimed that GM was going to beat that date, primarily because of the sustainable progress that the carmaker has been experiencing lately.

Whitacre spoke to business leaders in his home town of San Antonio and he revealed that for the first time in more than 10 years, GM has a "healthy, clean balance sheet."

He said that the company doesn't anymore have loads of debt. It also now has a cost structure that works. GM had received $50 billion of government financing to restructure in a bankruptcy managed by the U.S. Treasury, which remains a 61% owner of GM stock. [via autonews]

Topics: gm, united states, canada

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

We really couldn’t deny that quite a number of Audi customers and would-be-buyers are intently waiting for higher performance RS versions of the Audi A4 and A5. Of course, these...
by - January 17, 2017
The Chevrolet Cruze is coming to Australia. But it won’t be known as the Chevrolet Cruze. Instead, it will bear the Holden badge and get the Astra moniker. The 2017...
by - January 17, 2017
As expected, four years after the current generation of the BMW 4 Series was introduced in 2013 with the BMW 4 Series Coupe, the German premium carmaker is implementing a...
by - January 17, 2017
As BMW continues to pursue its plans for the coming years, President-elect Donald Trump gave out a warning to car manufacturers to prevent them from exporting their cars to the...
by - January 17, 2017
Audi recently unveiled its Q8 full-size coupe SUV concept at the 2017 North American International Auto Show. Bearing the traditional functionality of an SUV and the sexy and sporty styling...
by - January 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries