NEW YORK—General Motors Co., the rejuvenated Detroit automaker that recently emerged from federally assisted bankruptcy, announced this week that it had repaid $5.8 billion in U.S. and Canadian government bailout loans more than five years ahead of schedule.
“This turnaround wasn’t an accident of history,” said federal economic adviser Lawrence Summers.
“It was the result of considered and politically difficult decisions made by President Obama to provide GM and Chrysler—and indeed the auto industry—a lifeline, if they could demonstrate the will to reshape their businesses.”
Last year, GM and Chrysler emerged from bankruptcy as leaner, less debt-burdened companies. Chrysler is now partially owned by Italy’s Fiat S.p.A. and headed by its CEO, Sergio Marchionne. GM ousted its former Chairman and CEO Richard Wagoner and installed former telecommunications executive Ed Whitacre to lead the company back to profitability.
“When GM accepted taxpayer loans last year, we pledged to use those funds to restructure this company, to reinvest in our people and our plants, to create jobs, and bring outstanding new vehicles to market,” Whitacre said in a statement.
This week, GM also announced a new $257 million investment in assembly plants located in Detroit and Kansas City to build the next-generation Chevrolet Malibu and Buick LaCrosse vehicles. According to the Detroit Free Press, GM North America President Mark Reuss said that the company may soon start hiring employees, albeit at lower wage levels.
The company also confirmed that its electric car Chevrolet Volt will be released in October 2010, a month ahead of projected schedule.
The U.S. government is still 60 percent shareholder in the Detroit-based automaker.
“This turnaround wasn’t an accident of history,” said federal economic adviser Lawrence Summers.
“It was the result of considered and politically difficult decisions made by President Obama to provide GM and Chrysler—and indeed the auto industry—a lifeline, if they could demonstrate the will to reshape their businesses.”
Last year, GM and Chrysler emerged from bankruptcy as leaner, less debt-burdened companies. Chrysler is now partially owned by Italy’s Fiat S.p.A. and headed by its CEO, Sergio Marchionne. GM ousted its former Chairman and CEO Richard Wagoner and installed former telecommunications executive Ed Whitacre to lead the company back to profitability.
“When GM accepted taxpayer loans last year, we pledged to use those funds to restructure this company, to reinvest in our people and our plants, to create jobs, and bring outstanding new vehicles to market,” Whitacre said in a statement.
This week, GM also announced a new $257 million investment in assembly plants located in Detroit and Kansas City to build the next-generation Chevrolet Malibu and Buick LaCrosse vehicles. According to the Detroit Free Press, GM North America President Mark Reuss said that the company may soon start hiring employees, albeit at lower wage levels.
The company also confirmed that its electric car Chevrolet Volt will be released in October 2010, a month ahead of projected schedule.
The U.S. government is still 60 percent shareholder in the Detroit-based automaker.
