• Sep 16, 2010
New General Motors CEO Dan Akerson's first bit of big news isn't exactly good news: paying back the taxpayer for loans during GM's dark days is going to take years. How many years remains uncertain, with Akerson saying the company's performance will be the test, since repaying the government in a lump sum would be "unrealistic." It helps that this news isn't exactly unexpected, and if we can take anything from Akerson's 15 days on the job, well, at least he's honest.

[Source: Automotive News – Sub. Req.]


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  • 29 Comments
      • 4 Years Ago
      Not really surprising.
      • 4 Years Ago
      Not exactly a surprise, except for the yahoos on, well, Yahoo. It was common knowledge the IPO would not cover the full amount needed to buy out the government shares.
        • 4 Years Ago
        At least Akerson is being A.) Honest and B.) Realistic.

        Given the fact that most prior GM CEOs have been overly optimistic, this is a good thing.

        As taxpayers, we want to maximize this investment since we are into it for so much.
        • 4 Years Ago
        Agreed. If all these financial "experts" really thought GM, AIG,etc would be in such great financial health just a couple years after bankruptcy to repay their huge bailout loans, have proven just how disillusioned they are toward the health of the financial market and overall economy.

        Umm, how could GM repay billions to the govt if their core profit-producing business isn't nearly what was just 2-3 years ago? OK, they do really good sales --- moving inventory --- maybe 1 month w/n each financial quarter. It's not good enough. They have to do well every month for a few years to regain the financial strength they once had.

        These "financial analysts" wants the economy to bounce-back really big, really fast. It just can happen unless a brand new industry/product(s) pops up as the must have necessity for consumer & commercial markets globally.
        • 4 Years Ago
        Eh, nothing that we didn't expect. I'd rather GM focus on rebuilding themselves anyways. If GM is going to use our money to stick around longer, then hopefully they'll put that money to good use, and from what I've seen so far I'd say they're on the right track. Granted, they're not up there with Ford yet, but that's ok because they were worse off to begin with. Ford had their successful european division to look to for designs and some R&D. They never really re-invented themselves, just moved things around and became more focused on improving the quality of their products. GM needed new products altogether. Without focusing on Buick or Cadillac (both brands have been doing pretty well anyways) the Cruz, Camaro and Equinox are good signs that the company has moved on from it's early 2000 reputation of just being able to build trucks and Corvettes. There's still clearly room to improve and I'm still not a believer the Volt will be that successful, but if they keep making the strides they have done in the last 3 years, I don't mind them taking their time paying us back.
      • 4 Years Ago
      We will never get back what we paid into GM. Their market cap would have to reach an all-time high for us get back our "investment". If we get back 50 cents on the dollar, we should consider ourselves lucky.
        • 4 Years Ago
        I think what we've done is saved a hell of a lot of jobs though. Think about the ripple effect that GM's closure would have had on suppliers too. GM is a huge multinational corporation, so it wouldn't hurt only the United States. The other thing is that we get a lot of tax revenue from them, i'm sure.

        I just keep telling myself this stuff so i feel better, anyway. hehe.
        • 4 Years Ago
        I agree completely and people forget Japan closes off its markets to pretty much every one and also bail out their manufactures when ever they need, going as far as changing the value of the currency just this week to help prevent the eroding of their exporters, why? Because they realize the importance of a manufacturing base and they protect it with every tool they have, we for once protected one of our own in GM and half the country blasts the idea because they've drank the "free trade" cool-aid for far too long. There is no such thing as "free trade" and saving one of your own manufacturing giants has nothing to do with socialism, its good economics that the rest of the world has been playing for a long time.
      • 4 Years Ago
      If GM was smart they would start announcing any negative news they have now before the IPO while they dont have the stock to lose. Rather than waiting til after and have a more than normal rocky start as bad news coming in periodically will hinder the craze of buying GM or will curtail the momentum early.
      • 4 Years Ago
      I still dont understand why CEO is bothered about going to IPO.

      Let company build a solid reputation and products and make an year with full of profits - then go to IPO. The tax payers will get double of what they invested and thatz the way to prove.

      linuxaddict7
      • 4 Years Ago
      Im not 100% sure, but GM has to pay back the govt within the timelines.
      linuxaddict7
      • 4 Years Ago
      Happy B'day GM!! :-)
      • 4 Years Ago
      I would be happy if GM simply started manufacturing cars worth desire.
      • 4 Years Ago
      Thankyou Mr Akenson, just as i have always thought ... the most ignorant and arrogant car maker of all (GM) is not out of Bankruptcy Protection and won't be until every dollar and dime has been repayed back to the US Government. Any comment trying to state otherwise in nothing but a load of crap ... PERIOD!!

      * GENERAL MOTORS IS STILL UNDER BANKRUPTCY PROTECTION AS THEY STILL OWE BILLIONS UPON BILLIONS OF DOLLARS.

      * THEY ARE DEBT RIDDENED ...
      • 4 Years Ago
      I am surprised to read this. I figured there would be "some debt"; but nothing unusual for a huge company. I thought the shares were going to pay off the gov't debt in a substantial if not total way. I wonder if the stock offering was over hyped -- maybe why the changeover in leadership at GM.
      • 4 Years Ago
      lol, but those commercials, those proud commercials :P
      • 4 Years Ago
      To be fair he's curtailing the publics hopes that once the IPO comes out that all their government debt will be paid off. If the public was lead to believe its debt would be paid off once going public the fall out would be bad I'd believe.
        • 4 Years Ago
        It's not debt. If GM is in debt, then Wal-Mart is the most in debt company in the nation, because they have the highest total share valuation.
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