GM Repays The Loans Before Time To US And Canada Governments
April 22nd, 2010 - 7:19 pm ICT by GDBy Ranjan Bhaduri
Detroit, Apr 22, (THAINDIAN NEWS) Leading US carmaker General Motors Co seems to have left past its bad days that haunted it badly even a year back. After the US economy was badly hit by the recession two years back, GM, along with another US car giant Chrysler had to resort to Bankruptcy to stay afloat. It resumed its operations afresh after applying for bankruptcy and within two years it has paid back the loans it had taken from the governments of Canada and the USA. The total amount of loan was $8.1 billion. What has taken the market analysts by surprise is the fact that GM has actually managed to pay back the huge amount of loan five years before the time.
When the Obama administration stepped in to rescue the ailing iconic US automaker, a lot of people questioned the bailout. They argued why the government should resort to using taxpayer’s money to bail out a carmaker. However, the decision has turned out to be a good one. Now GM has got rid of the burden of debt but it still has to go a long way to reclaims its position in the industry. The Government continues to own 70% of the company. Ed Whitacre, the CEO of GM said in a recent statement that the focus on midsized cars and compact models have put the company on the track to recovery.
The CEO of GM also said that the company is going to invest an amount of $257 million in the Fairfax Assembly Plant of GM. The company also added several thousand jobs in last 9 months as the White House has revealed.
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Tags: 1 billion, 9 months, assembly plant, bailout, bankruptcy, car giant, ceo, chrysler, compact models, economy, ed whitacre, general motors, gm, governments of canada, loans, market analysts, obama, recession, several thousand, white house