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We first heard that General Motors might add production of the next-generation Chevrolet Malibu to its Detroit-Hamtramck Assembly plant back in December, and that news has been confirmed today. GM Chairman Ed Whitacre held a press conference this morning at which he announced the automaker had paid back the remaining $5.8 billion owed to the U.S. and Canadian governments a full five years ahead of schedule. He made the announcement at the company's Fairfax plant in Kansas that currently builds the Chevrolet Malibu and Buick LaCrosse, a perfect venue to announce new plant investments for the next generation Malibu.

GM will spend a total of $257 million to get both the Fairfax and Detroit-Hamtramck plants ready for the new Malibu. The Kansas City plant will receive a $136 million investment and be the new car's primary production site, while $121 million will be spent tooling up the Detroit plant to build the 2012 Malibu alongside the Chevrolet Volt.

The Detroit-HHamtramck plant currently builds the Cadillac DTS and Buick Lucerne, both of which are expected to end production some time in the next year. The Lucerne will likely be dropped from the lineup and the DTS will be replaced by the Cadillac XTS, which will likely be built in Oshawa.

[Source: Automotive News, sub. req.]
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GM Pays Back Government Loans in Full, Announces Investment in Fairfax, Detroit Hamtramck

o GM pays back its loans from U.S. Treasury and Export Development Canada
o Strong sales, confident outlook enable payback ahead of schedule
o $257 million investment for Malibu at Fairfax, Kansas, and Detroit Hamtramck

KANSAS CITY, KANSAS – General Motors Company Chairman and CEO Ed Whitacre today announced that GM has made its final payment of $5.8 billion to the U.S. Treasury and Export Development Canada, paying back its government loans in full, ahead of schedule.

The announcement came at a ceremony here to highlight an investment of $257 million at GM's Fairfax, Kansas, and Detroit Hamtramck assembly centers. The investment will prepare Fairfax to build the next generation of Chevrolet's award-winning Malibu, and make Detroit Hamtramck a second source for Malibu, ensuring that Chevrolet can meet market demand for this popular mid-size sedan.

"GM is able to repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse we build here in Fairfax," said Whitacre. "We are now building some of the best cars, trucks, and crossovers we have ever built, and customers are taking note. Our dealers are increasing their sales, we are investing in our plants, and we are restoring and creating jobs."

The U.S., Canadian, and Ontario governments, as part of the launch of the new GM, provided loans of $8.4 billion and took equity stakes in the new company. Today's payment of $5.8 billion ($4.7 billion to the U.S. Treasury and $C1.1 billion to Export Development Canada) completes the payback of these loans.

"GM's ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track. It is also an important first step toward allowing our stockholders to reduce their equity investments in GM," said Whitacre. "We still have much hard work ahead of us, but we are making progress toward our vision of designing, building, and selling the world's best vehicles.

"We appreciate the support the taxpayers have given GM, and our great new products are tangible results of that support."

Strong sales support manufacturing, jobs

Strong sales of new Chevrolet, Buick, GMC, and Cadillac products are fueling a steady increase in production as GM works to meet growing customer demand.

Sales for GM's four brands are up 36 percent through March versus the same period in 2009, and many newly introduced cars and crossovers – including Chevy Equinox, Camaro and Traverse; GMC Terrain and Acadia; Buick LaCrosse; and Cadillac SRX – remain in short supply at GM dealers.

The Fairfax plant currently builds two of GM's strongest selling cars, the Chevy Malibu and Buick LaCrosse. For the first three months of this year, GM's U.S. dealers delivered more than 49,000 Malibus and 14,000 LaCrosses, representing a 58 percent increase over the same period last year. In response to this strong demand, Fairfax in February added a third shift of approximately 1,050 jobs, bringing total employment at the plant to more than 3,800.

Fairfax will become the primary source for the next generation of the Malibu. Detroit Hamtramck, which builds the Buick Lucerne and Cadillac DTS, will be equipped to build the Malibu as well, ensuring that Chevrolet can meet market demand.

Detroit Hamtramck will also build the Chevy Volt electric vehicle with extended range, which launches this year. On March 31, the plant celebrated a major milestone, the building of the first pre-production Volt on the regular assembly line.

The Malibu-related investments of $136 million in Fairfax and $121 million in Detroit Hamtramck will include facilities, machinery and equipment, and tools.

Since the launch of the new GM last July, the company has announced investments of more than $1.5 billion at 20 facilities in the U.S. and Canada. These investments restored or created more than 7,500 jobs, and they demonstrate a strong commitment to GM's future and to the United States and Canada.

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    • 1 Second Ago
      • 5 Years Ago
      I wonder if they'll put a turbocharged engine in the new Malibu?
      • 5 Years Ago
      I would buy a Malibu on ONE condition, make the doors and roof open up so I don't have to bump my head when I try to crawl in the door.
        • 5 Years Ago
        Yeah, GM should have made the Malibu into a 'large car' like the Camry and Accord instead of keeping it roughly the same size and weight as the previous generation car.

        Oh wait, then what would they do with the Impala?
      • 5 Years Ago
      Doesn't the US still own over 60% (and Canada another 10%) of GM? GM got like $50 billion from Uncle Sam and has paid back ~$7 Billion(?)... Not sure if they are free of Washington's whims just yet, but its a good start and it lets GM and Washington pretend that they are no longer bedfellows.
      • 5 Years Ago
      I see more of my money is going to good use.
      • 5 Years Ago
      Why? Detroit is a dying city with no future, same for Michigan and to top it all off both are dominated by Unions and their stooges. GM should open up a plant in Alabama, you get hard workers, who EARN their paycheck and will never knowingly damage cars like some union member did in the past.

      BMW is in the south, Hyundai, Nissan, everyone is there.
        • 5 Years Ago
        How's that Hatey your fellow Americans thingee going for you?
        • 5 Years Ago

        I guess you have no idea where most of the UAW membership hails either currently or 1 or 2 generations back.
        • 5 Years Ago
        You got that right! This is a political move and a BAD business decision. GM's Spring Hill plant would require practically nothing to start-up as prior to Government Motors, GM spent $700M on the Tennessee plant in 2007. However, Tennessee Senators Bob Corker (R) and Lamar Alexander (R) are not exactly going to gain any favors from the still 61% U.S. Govt. owned GM.

        Don't forget the new VW plant soon to be up and running in Chattanooga, TN. BTW I saw the Alabama-built 2011 Hyundai Sonata on the road yesterday. Look out Camry and Accord, thar's a new sherriff in town in the mid-sized sedan category.

        Oh and BTW, I'm a midwestern transplant to the South. I like it here where people actually appreciate a good job and an honest day's work.
      • 5 Years Ago
      "New" Malibu is ugly keeps the same front it has now but adds a squared Camaro back
      • 5 Years Ago
      Very good news.

      I think it would be quite nice if Ford decided to bring at least some of it's Fusion production to the US instead of having them being built in Mexico.
        • 5 Years Ago
        I agree. There was a rumor that, that might happen, but no deal so far.