General Motors Co. (GM) was in a bad way last year after declaring themselves bankrupt, well now the troubled Detroit automaker is on the way to recovery after paying back its loans of $8.1 billion the U.S. and Canadian governments. GM has managed to pack back the loans 5 years early.
It was the Obama administration that stepped in to broker a deal to bail out the struggling U.S. automaker, and now looks to have been a good decision. Most people did not see it that way, wondering why taxpayer’s money should be used to bail out a private company?
Although General Motors is no longer in debt to both governments, they are still a long way from being the company it once was. The government still owns 70 percent and has still been losing money, although there have been signs of a recovery in the auto market.
According to Associated Press, GM CEO Ed Whitacre said that they were rebuilding the company by pushing through more sales of midsize cars and crossovers. Whitacre also stated that 20 plants has seen a cash injection of $1.5 billion, this has safeguarded 7,500 jobs. For more details on this, visit the AP website in the link above.