• Dec 18, 2009
Good news, the check is in the mail! General Motors issued a (very) brief press release this afternoon stating that the automaker had delivered on its promise to issue its first reimbursement checks to the U.S. and Canadian governments by the end of the year. GM sent $1 billion to the feds and $192 million to the Canadian government, and GM reiterated in the statement that it would complete payments totaling $6.7 billion (to the U.S. government) by June 2010.

Beyond the $6.7 billion GM owes the federal government is a 60 percent ownership stake Uncle Sam has on the 101-year-old automaker. When the General releases an initial public offering the resulting stock sale will (supposedly) buy the government out. Experts feel the IPO could happen as early as the second half of 2010. Hit the jump to read over the General's succinct press release.

[Source: GM | Image: Bill Pugliano/Getty]



PRESS RELEASE:

I am pleased to announce that today, GM followed through on its commitment to begin loan repayments to the U.S. and Canadian and Ontario governments. We paid $1.0 billion to the U.S. Treasury and $192 million to Export Development Canada.

We are grateful for the support the governments have provided us. We look forward to continuing repayments through June 2010, at which time the balances will be paid in full, assuming no downturn in the economy or business.



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  • 32 Comments
      • 5 Years Ago
      Poor GM. Damned if they do.Damned if they don't.
      • 5 Years Ago
      Nice to see we taxpayers are getting some of our money back.
        • 5 Years Ago
        You're not getting anything back (really) and neither are we.

        Readup on what they're doing, seriously - it's not common, but neither is this situation.
        • 5 Years Ago
        I wonder what Brian has to say about this.
      • 5 Years Ago
      What I don't quite understand, or believe is that GM is ideally supposed to be paying the money back to the taxpayer, right? However, who is collecting the money on our behalf? -the US Government, that's who, and I really don't think the the Government has proven themselves to be good stewards of our money. I don't believe for 1 second that we as the people would ever see 1 nickel of relief from any of this money.
      What no doubt will happen is that taxes will continue to rise to make up for all the billions that were handed out for the bailouts, then when the money is paid back, the taxes will still remain higher (and continue to rise) and the Government will be flush with even MORE money from the repayment monies consequently leading to more frivolous spending.
      Seriously, who really believes those in political power can be trusted to do the right an honourable thing, especially with that much money?
        • 5 Years Ago
        You weren't likely to see this money in the first place anyways. That would require spending. And believe it or not, some people are completely against govt spending....
      • 5 Years Ago
      Keep it up GM.
      • 5 Years Ago
      how about they pay back the german govt as well? first they let them work on a deal for months and then all of a sudden they're like "wooops sorry no sale!"
      • 5 Years Ago
      I think ford should go ahead and borrow 50 billion from uncle sam and then turn right around and write them a check for 7 billion and say we're even, Good business sense to me it seems.
        • 5 Years Ago
        They never said they were even, they said they were paying back the cash loans in full. The remaining portion of the amount owed will be paid once GM has their IPO. This is all laid out in the story.

        Remember that most of the money given to GM was in exchange for shares in the company, the Gov't owns 60% of GM currently. The Gov't gets that money back by selling their shares. Since GM is not a public company yet, that can't happen. Hence why it was mentioned in the story that GM has plans to go public as early as the 2nd half of 2010.

        Both GM and the Gov't want to GM to go public as quickly as possible, believe that.
      • 5 Years Ago
      Do you rembember when people bashed Ford, Huh?
      • 5 Years Ago
      GM owe me over 40k for them white bricks I gave them
      • 5 Years Ago
      does anyone else wonder where they're getting this money so soon from? It's certainly not from car sales. That seems like a lot of money to pay back in 6 months, even for a big corporation like GM.
        • 5 Years Ago
        Yes, I do! I suspect will find out it's a sham.

        As much as they owe, it should have taken YEARS to start paying on principle. It's not like they've earned any profit in any quarter for, oh 10 years?

        That's why I'm saying it's way too fast to be plausible.

        • 5 Years Ago
        Maybe they figured how to use less of the loans?
      • 5 Years Ago
      Headline should read... "GM is paying back the same money given to them by the American tax payer and Canadian Government"

      GMs not even posting Profits, they cant even manipulate their numbers to look good, which Im sure they tried to do. Im glad to see them give the funds back though. Although I hope this is no publicity stunt. .
        • 5 Years Ago
        Sorry: "own" -> "owe"
        • 5 Years Ago
        So what it boils down to is, they borrowed money, so they're evil.

        I assume on the same train that you've never used a credit card...
        • 5 Years Ago
        @montoym
        you have totally misunderstood me. I never said I wasnt happy they where paying it back. That makes no sense when you look at everything else I said.

        Most of you know little about what went on with GM and the government leading money they themselves borrowed. I will forever boycott GM (even though I love the CTS). In order to explain most of my reasons I would have to explain the ins and outs of Finance which I dont have time to explain. There is so much garbage attached to this GM crap it makes me sick. It wouldnt be a big deal but it actually effects me and I have no say in the matter.
        invisiblepigeon3
        • 5 Years Ago
        montoym, YES IT MATTERS! If you give me back money that you made by doing something unethical, I wouldn't want it.

        You have no scruples.
        • 5 Years Ago
        No sw, you GAVE the money to the big guy. He used it to keep himself alive and running, and he also set up a fund to be used in case of an emergency when he deems it appropriate. It's not YOUR money, much like the money on your bank account doesn't belong to the employer who gave it to you.
        • 5 Years Ago
        So Dan, you're saying that the next time your kid falls off his bike, or comes down with a virus, he should just MAN up and let the chips fall where they may. He could end up on a Wheaties box or in a pine box, but he should not be "saved". This is the sort of stupid ideology that got this country into trouble in the first place.

        I loathe 90% of what "Wall Street" of today practices and stands for. For the greater good however, the government did the right thing. Since we now have PROOF that these scheisters cannot and should not be trusted, I would be very mad at the government if that industry is not hit with more STRINGENT regulations.

        GM got their get out of jail card. Going forward, they sink or swim on their own. Everything I see right now, points to GM becoming a better, stronger company with competitive products.

        Get over the past and move on. Or should we just start bombing Berlin and Hanoi again?
        • 5 Years Ago
        @ David:

        I didn't say I was happy because they are paying a portion of the amount owed. Which btw, is fairly moot since the rest will be paid back by June. Instead, I was focusing on the people that are mad that GM is paying back the borrowed money with the borrowed money which I think is a ridiculous statement.

        GM will pay back the $6.7B by June (as was stated in the story) and the rest will be paid back once GM has their IPO which is projected to happen late 2010, again as stated in story as well.

        If you're unhappy that they started on the road to repayment, I don't know what to say to that. Did you really think they'd be able to pay back all of it at once? That's sort of like taking out a mortgage and the bank being mad at you that you didn't make a lump sum payment on it all.
        • 5 Years Ago
        My beef with it. I do not believe GM should look like a good guy in any of this. Im very excited they are paying this (actually borrowed by the government) debt of a debt back. Its awesome. You are correct in that I should be ecstatic that its getting paid back, but Im still rather mad that GM purposely set themselves up for Bankruptcy by taking out unsecured debts that can be quickly gotten rid of in bkrutcy court, unlike Ford, who took loans held against collateral. Im ticked that all this happened. Im still bitter they #1 were offered money (we didnt even have) #2 took it. Now they get to be controlled by the federal government and not shareholders. They are finding out how much that sucks. Same thing with the banks.
        • 5 Years Ago
        I've said it before and I'll say it again. If you lend me $10 and I pay you back $10, why do you care where it came from? Are you going to be mad that the $10 didn't come from some other account?

        If nothing else, I think it's good that things didn't get bad enough that they actually needed those funds.
        • 5 Years Ago
        @montoym

        I appreciate what you mean but there's another side to the problem as well. The problem is what if I didn't want to lend you $10 in the first place. What if someone much more powerful than me took my money and gave you that $10? Also what if I knew the person I was being forced to give money to had a history of being awful financially.

        and I just don't mean this for just for GM, I mean it for every company that lined up at the trough.
        • 5 Years Ago
        Montoym, in GM's case, they own $50,000 and they're paying back $10, and you're supposed to say "gah" and be really proud of them. Not happening!
      • 5 Years Ago
      I don't know how they can pay back when they haven't even been in the black. It's just a PR move to project that they're on the road to recovery. Even if they were to pay it all back, the govt. forgave something like $15 billion dollars in debt when they went bankrupt, so either way I won't be impressed.
        • 5 Years Ago
        I agree 100%.

        I currently drive a pontiac...But that will be the last GM vehicle I ever own.
        I'll drive it until it falls apart...because I'm not "in the money". I was pissed that the government didn't let them fail. Their is NO SUCH THING as to Big to Fail!
        • 5 Years Ago
        Wait...so you've got your panties in a bunch because they borrowed money, right?

        But if they try to return it, oh...it's only a PR move? Why do you care whether they're in the red or in the black....They're returning the money, that's the important point. Or did you want them to keep it?
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