GM Pays Back Remaining $5.8 Billion in Loans to U.S. and Canada

GMWhitacrePayback02 GM Pays Back Remaining $5.8 Billion in Loans to U.S. and Canada
Good news to all you GM investors out there: the General has just wrapped-up paying back its US Treasury / Export Development Canada loans while also investing $257 million in prepping its Malibu plants in Fairfax, Kansas (primary) and Detroit Hamtramck (secondary).

The total payment was $5.8 billion ($4.7 bilion to the US and the remaining $1.1 billion to Canada). According to a report from Automotive News, “the governments still own equity stakes in GM.”

GM CEO Ed Whitacre had this to say: “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.”

That said, it should be noted GM’s March sales are up 36% from the previous year, thanks to popular crossover models throughout the range (Equinox, Traverse, Terrain, Acadia, SRX), the 5th-generation Camaro, and the mid-size Malibu and Lacrosse (with a 58% growth in deliveries for the first quarter of 2010).

For a breakdown of what’s being built where, scroll down for an excerpt from the press release.

“Fairfax will become the primary source for the next generation of the Malibu. Detroit Hamtramck, which builds the Buick Lucerne and Cadillac DTS [being "wound down"], will be equipped to build the Malibu as well, ensuring that Chevrolet can meet market demand.

Detroit Hamtramck will also build the Chevy Volt electric vehicle with extended range, which launches this year. On March 31, the plant celebrated a major milestone, the building of the first pre-production Volt on the regular assembly line.

The Malibu-related investments of $136 million in Fairfax and $121 million in Detroit Hamtramck will include facilities, machinery and equipment, and tools.”

By Phil Alex

fairfax1 GM Pays Back Remaining $5.8 Billion in Loans to U.S. and Canada

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