GM Repays Remaining $5.8 Billion in Government Loans Ahead of Schedule

GM Chairman and CEO Ed Whitacre announced this morning that the automaker has made its final payment of $5.8 billion to the U.S. Treasury and Export Development Canada, ahead of schedule. The announcement was made at a ceremony to highlight an investment of $257 million at GM’s Fairfax, Kansas, and Detroit Hamtramck assembly centers.

“GM is able to repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse we build here in Fairfax,” said Whitacre. “We are now building some of the best cars, trucks, and crossovers we have ever built, and customers are taking note. Our dealers are increasing their sales, we are investing in our plants, and we are restoring and creating jobs.”

The U.S., Canadian, and Ontario governments gave GM loans of $8.4 billion and took equity stakes in the new GM. Today’s payment of $5.8 billion ($4.7 billion to the U.S. Treasury and $C1.1 billion to Export Development Canada) completes the payback of the loans.

“GM’s ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track. It is also an important first step toward allowing our stockholders to reduce their equity investments in GM,” said Whitacre. “We still have much hard work ahead of us, but we are making progress toward our vision of designing, building, and selling the world’s best vehicles.

GM also stated that sales of GM’s four brands are up 36 percent through March versus the same period in 2009.

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