GM pays off bailout loans

General Motors has paid off its loans to the U.S. and Canadian governments, the company said this morning.

The loans had outstanding balances of about $4.7 billion to the United States and $1.1 billion to Canada after accounting for exchange rates.

"I am very pleased to announce that, as of today, General Motors has repaid, in full and with interest, the loans made last July by the U.S. Treasury and Export Development Canada," GM Chief Executive Ed Whitacre said today.

GM received about $50 billion from the U.S. government in exchange for $2 billion in preferred stock and 61% of the company's common stock. Today's announcement puts GM a step closer to an initial public offering -- which is when the government can sell its stake and recoup its investment.

The Canadian and Ontario governments still own an 11.7% stake in GM, the United Auto Workers health care trust owns 17.5% of the company, and the old GM, now known as Motors Liquidation (MTLQQ), has a 10% stake.

GM posted a net loss of $4.3 billion for the period from its emergence from bankruptcy in July through the end of 2009.

Whitacre also announced the company's plans to invest $257 million into its Detroit and Kansas City plants to build the next-generation Chevrolet Malibu. He also said that its electric vehicle, the Chevrolet Volt, would be released in October, two months ahead of schedule.

Whitacre spoke at a plant in Fairfax, Kan., where GM builds the Malibu and the Buick LaCrosse sedans.

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches.aspx?post=1745206&_blg=1,1745206

so lemme see if i understand. we(taxpayers) give gm 50 billion. they pay back 4.7 and then sell it to someone else?

They got 5 billion on loans and 45 billion in stock guarantees. The loans are now paid off, then when GM issues an IPO the remainder will be paid.

ok. thanks for that. makes sense now.