GM pays back US & Canadian loans way early

[Supermans]

So the Government should quit being in charge of GM now that it's profitable again. Oh wait, that's not going to happen...

[alrox]

Originally Posted by Blade

The thing is that there is no way that can happen. GM has already reported a $4.3 Billion loss at the end of last year, which curiously coincides with payoff the of loan.

It can very well happen. They lost 4.3 billion in their car production. They still aren't a profitable company even after the 100+ billion that was given to them.

The 'payback' is a complete fraud.

[FenwickHockey65]

Originally Posted by alrox

It can very well happen. They lost 4.3 billion in their car production. They still aren't a profitable company even after the 100+ billion that was given to them.

The 'payback' is a complete fraud.

The $4.3 billion lost was mainly due to one-time bankruptcy-related expenses. GM is still on track to turn a profit this year.

[Unfair]

Originally Posted by FenwickHockey65

The $4.3 billion lost was mainly due to one-time bankruptcy-related expenses. GM is still on track to turn a profit this year.

Let's hope so, this news is not very comforting.

[a_Username]

So their logic is that since the money couldn't have been fully repaid with earnings, then it would have to be paid from the TARP account? This "either/or" fallacy leaves out the fact they could have used earnings combined with the billions worth of CASH ON HAND to repay the loans.

However, considering they have a credible source saying they used bailout money to repay the federal government, perhaps GM just decided to return the unused bailout money due to there being no need of having it. Either way, the government was paid back the $6.7B.

[StuntmanMike]

Originally Posted by Blade

Once they go public later this year, they will be able to pay that off, untill then the govt still owns GM...

The government "owns" GM about as much as anyone holding U.S. Bonds "owns" the country.

In other words, not at all.

[Supermans]

Originally Posted by StuntmanMike

The government "owns" GM about as much as anyone holding U.S. Bonds "owns" the country.

In other words, not at all.

I beg to differ..

[a_Username]

Originally Posted by Supermans

I beg to differ..

Then feel free to post evidence of political interference that directly effects the new GM's (as a corporation) business plans.

[Blackbean]

I thought that Toxic Assett Relief Program money, went to banks holding bad mortgages.
Does GM have alot of mortgages,or are they talking about GMAC? Either way,money from the Government was returned to the Government,plus GM's stock is goind to be worth alot more when it is sold to repay the rest of the debt.
I am more concerned about politicians who want American companies to fail,than the actual companies themselves.
Billions for fruitless wars and miserly pennies for Americans.

[ssump29]

So they giving back money that they borrowed but didn't have to use. WHAT THE HELL IS THE PROBLEM. Would you rather they keep it and give it out as bonuses. How is this bad or not comfortable news.

As a business man I don't care what pot or where you are getting your money to give me my money just as long as its paid back.

[FenwickHockey65]

Originally Posted by ssump29

So they giving back money that they borrowed but didn't have to use. WHAT THE HELL IS THE PROBLEM. Would you rather they keep it and give it out as bonuses. How is this bad or not comfortable news.

As a business man I don't care what pot or where you are getting your money to give me my money just as long as its paid back.

Bingo...

The sad truth is that many Americans want GM to fail. Simple as that. There are people on this site who want GM to fail. They don't consider the fact that GM supports a large majority of American families, directly or indirectly.

If this whole thing is true, then people are making a big deal out of nothing. Anyone with a shred of financial sense would do this. If you took out a loan but ended up using less of that money than you expected, who wouldn't give that money back instead of keeping it and using it while it gains interest? Nevertheless, GM still managed to pay off the loans as required.

[Unfair]

GM sent out this email, it seems a little misleading for them to praise what they did, when it was later found out to be bailout money paying bailout money, (which is cool i guess since it's their own money) just saying the email is like "look what we did!" but not how they did it?

Dear *******,

We value and appreciate your loyalty more than anything. We are proud to announce we have repaid our government loan – in full, with interest, five years ahead of the original schedule. We realize we still have more to do. Our goal is to exceed every expectation you've set for us. We're designing, building and selling the best cars and trucks in the world. Like the award-winning Chevy Malibu, the all-new Buick LaCrosse, the versatile Cadillac CTS Sport Wagon and the innovative GMC Terrain, just to name a few. As we move into the future, we're thankful to have loyal owners like you. We invite you to learn more about the new GM and join our community, by visiting gm.com. And once again, thank you for your support.


Susan E. Docherty
Vice President, U.S. Marketing

Just seems a little shifty is all i'm saying. i agree fenwick it's paid back money they borrowed anyway.

[Hylton]

Originally Posted by a_Username

Then feel free to post evidence of political interference that directly effects the new GM's (as a corporation) business plans.

Dude, come on....

[Hylton]

Originally Posted by ssump29

As a business man I don't care what pot or where you are getting your money to give me my money just as long as its paid back.

Even if I am paying you back with your money (which I also borrowed)?