The brief statement is attributed to Whitacre and promises another $1 billion in cold, hard cash to the U.S. government and an additional $192 million to Canada. In the statement Whitacre sounds confident that the loans will soon be paid in full, adding "GM has every confidence that the remainder of the loans will be paid in full by June 2010; five years ahead of schedule."
On April 1 The General will have shaved $2 billion off its debts with another $4.7 billion to go. We're no math experts, but we're guessing $1 billion per quarter is going to have to be substantially increased over the next three months to repay its debt in full by June 30. But with about $40 billion in the bank, GM will likely have the cash on hand to pay off Uncle Sam by the time Summer is in full swing.
Once GM does pay off its $6.7 billion loan, the feds will still own 61% of the Detroit, MI-based automaker, but with some analysts expecting GM to take its stocks public in the next few months, the automaker could soon be a fully public company again. We're sure GM executives will be very happy when that happens. Hit the jump to read GM's brief press release.
[Source: Detroit Free Press | Image: Bill Pugliano/Getty]
While we have more work to do, GM is building high-quality, award-winning vehicles, our direction is clear and our plan is working. Given the progress the company is making, GM has every confidence that the remainder of the loans will be paid in full by June 2010; five years ahead of schedule.