General Motors Co. plans to begin paying back a $6.7 billion loan it owes the U.S. government starting late this year, putting it on track to potentially repay the entire note by the middle of 2011, said a person familiar with the matter.
But in a move that could be controversial and risky, the car maker plans to use other money it received from the government to pay back the borrowing.
Monday, November 16, 2009
How's Your Bailout? Automotive Edition
The Wall Street Journal reports that General Motors is getting ready to pay back some of the money it borrowed from the federal government ahead of schedule. That sounds like good news, until you learn that it is paying back the loan with money cash it got from the auto bailout.
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I saw this on the CNBC this morn. Later I was discussing it with my brother and it was his opinion that the marketing department was telling them to repay it.
ReplyDeleteThe idea being that news casters when ever they discuss gm generally talk about it being government motors and since as citizens they are now owners they should be able to get a deal. So the press has been bad. Don't know if this is the reason for the sudden payback even after they show $1 Billion loss. But sounded interesting. Taking a look at the tool I use to track precious metals, http://www.learcapital.com/exactprice , I see that platinum is up in a big way ($1437.00 right now) and I wonder if this isn't related to the auto news as it's such a key ingredient in catalytic converters.
Michale Moores documentary regarding GM was very thought provoking about the way GM conducts its business.
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