General Motors Pays off Government Loans Ahead of Schedule
The First Step in GM's Road to Recovery
General Motors Chairman and CEO Ed Whitacre announced at GM's Fairfax, Kansas assembly plant last April 20, 2010, that the company is repaying the entire US$8.4billion in loans to the U.S., Canadian and Ontario governments two full months ahead of the schedule that the company put for itself and five years ahead of the deadline put in place by the creditors, the said U.S., Canadian and Ontario governments.
The loans were granted last year to GM (as to other car manufacturers, in varying amounts) to help the U.S. automotive industry fight the global economic downturn of the past years. GM's speedy and full repayment of this loan is a solid indicator that the company's efforts to counter its part of the recession is working and paying off. Additional investments in the amount of U$257million at two of GM's manufacturing facilities, the Fairfax, Kansas and Detroit Hamtramck assembly centers, is further proof of the efficacy of the company's recovery efforts.
GM has credited the renewed success to increase sales in its North American markets and strong sales in its key global markets in Asia.
While realistically mindful that there is still much work to be done, the company has emphasized that the improving financial health is mostly due to successes in GM's renewed efforts in designing, manufacturing and selling quality-built vehicles to its customers worldwide. There is an increasing confidence in the new and responsive product lines that GM has been generating to achieve its goal of positive change in all its markets.
For its customers, the bottom line of GM's renewed success is that they are getting the kind of products that cater to their actual needs, are innovatively designed to respond to changing times and are built with quality in mind.