GM pays back US & Canadian loans way early

[Brokinarrow]

Meh, I'm not going to try and dig out numbers and facts to support an argument for or against GM's possible profitability. I'm just going to sit back and watch and see what happens. If it ends up GM is profitable for 2010, GREAT! If not, that will be disappointing. But I would hope that all the members here (myself included) would be pulling for GM to make it through OK.... unless someone LIKES to see tax dollars wasted?

[Sax1031]

Every tax paying American has a vested interest in GM. I sure hope they do well and are profitable this year.

[Brokinarrow]

Originally Posted by Sax1031

Every tax paying American has a vested interest in GM. I sure hope they do well and are profitable this year.

And may we never repeat this dark chapter in our country's history.

[Mindz]

Why is it that as soon as I had that website come up, autoprotect shows up with 4 trojans that it quarantined?

[drivingincamaro]

this debate:



me

[FenwickHockey65]

From Autoblog:

http://www.autoblog.com/2010/04/21/w...5-years-ahead/

This morning, General Motors Chairman and CEO Ed Whitacre confirmed that the company has paid back a total of $5.8 billion in federal loans a full five years ahead of schedule. Whitacre attributed the company's ability to make the payment, with interest, to its new strategy and the success of new models like the Buick Lacrosse and Chevrolet Malibu.

GM received some $50 billion in loans from both the U.S. and Canadian governments, with the majority of those funds converted into company stock. The remainder totaled over $8 billion owed to the U.S. and Canadian governments, all of which has now been paid back less than a year after GM emerged from bankruptcy. The news was announced at a press conference at the company's Fairfax, Kansas manufacturing facility, which will soon add production of the hot-selling Chevrolet Malibu, and was attended by Kansas Governor Mark Parkinson and other members of government.

As it is, the federal government still owns 60.8 percent of GM, which means that whenever the company issues its IPO, the tax payers could easily get all of their money back.

[comiskeybum]

Originally Posted by FenwickHockey65

From Autoblog:

http://www.autoblog.com/2010/04/21/w...5-years-ahead/

well im gonna help GM out. They're gonna get $23,000 of my money in June when I buy my cyber gray metallic 2010 equinox LS.

[ssump29]

Originally Posted by 8cd03gro

So you're saying without the costs of restructuring, they still posted a loss... so where is the money coming from to pay back the loans? It's not like restructuring costs don't lose real money. If they spend that money and don't make it back, it's a loss. They are 3.4 billion short of where they were at the beginning of the 4th quarter. Even if you don't count the restructuring costs, they still posted a net loss. You can't pay back loans with no profit whatsoever and losses to boot. So again, where is this money going to come from?

I'll believe it when I see it.

It's clear you know nothing about accounting. Just cause you lose money one year doesn't mean you don't have any. It's called retained earnings and cash on hand which aren't in those numbers they are reporting. My company lost 18 million in 2008 yet we still had more then 50 million in retained earnings. You can't just take the last year and assume thats the current state of a company.

[a_Username]

Great news.

[BackinBlackSS/RS]

Just saw a GM commercial on TV. Ed Whitacre stated that GM has paid back all the loans with interest 5 years ahead of schedule.

[DGthe3]

FAQ on the government loan paybacks (from GM)

Originally Posted by GM

Today, GM announced that we have paid back the U.S. Treasury and Export Development Canada loans in full, ahead of schedule, and with interest. In addition, GM also highlighted $257 million investment at Fairfax Assembly and Detroit Hamtramck to build the next generation Chevrolet Malibu. Answers to some frequently asked questions follow.
How much money did GM pay back?
The initial loans were $8.4 B. GM has made multiple payments since July 2009. The final payment was $5.8 B ($4.7 billion to the US Treasury, and $1.1 billion to Export Development Canada).
Why did GM pay the loan early – doesn’t the company need the money?
GM believes it’s important to pay off debts as soon as possible to further build consumer and taxpayer confidence in the company. The company is able to pay back the loan because consumers are responding to our newest launches, and sales are improving. U.S. sales performance is tracking upward, indicating growing consumer receptivity to returning to GM showrooms. Encouraged by these trends, GM believes the business is turning in a positive direction.
What was the money used for? Was it a good investment?
The loan money went toward supporting new GM’s operations, including investing in plants, products and jobs so the company can design, build and sell the world’s best vehicles. We are able to do this because our business plan is working and our cars are selling. While there is more work to do, the company is making solid progress toward achieving this vision.

You can read GM's own press release about the loans here

[FenwickHockey65]

New GM commercial.

Super sexy Regal GS at the end.

[Xanthos]

Originally Posted by FenwickHockey65

Super sexy Regal GS at the end.

- X

[8cd03gro]

Originally Posted by ssump29

It's clear you know nothing about accounting. Just cause you lose money one year doesn't mean you don't have any. It's called retained earnings and cash on hand which aren't in those numbers they are reporting. My company lost 18 million in 2008 yet we still had more then 50 million in retained earnings. You can't just take the last year and assume thats the current state of a company.

There are no retained earnings when you declare chapter 11 and follow up with consistent losses. They're paying back with loan money because things are looking up and GM COULD be profitable this year, which is good.

Listen guys, like someone pointed out, I live in Michigan. I would love to see GM be successful again and recent news shows hope, but my point is this: You guys seem to think yesterday and today's news means GM is back, profitable again and growing to what it used to be. Realistically, these "lesser" loans could have been paid off right away with TARP money and GM would still be out $60 Billion. Even in one of the articles someone posted, GM said they are still years away from a full return and that all depends on if they are profitable this year. GM is making the right moves to look good in the public eye (very important) and they seem to be doing better, but thinking they're off the hook and ready to go is a far-cry from the truth. There's still a loooonnnng road ahead for GM to even break even on taxpayer money. This payment is a good thing and I'm very happy, but it's not even close, NOT EVEN CLOSE to even for GM. To get there, they still need to post profits and they need to do it for an extended period of time. I'm just debating to make it clear that the statements your seeing of, "GM has payed back all of it's loans" does not mean the taxpayers aren't still owed billions of dollars and GM isn't still a money pit of tens of billions of dollars. Anyway, GM looks to be on the right track and hopefully within 4-5 years we will see General Motors again as opposed to government motors.