[DGthe3]

FAQ on the government loan paybacks (from GM)

Originally Posted by GM

Today, GM announced that we have paid back the U.S. Treasury and Export Development Canada loans in full, ahead of schedule, and with interest. In addition, GM also highlighted $257 million investment at Fairfax Assembly and Detroit Hamtramck to build the next generation Chevrolet Malibu. Answers to some frequently asked questions follow.
How much money did GM pay back?
The initial loans were $8.4 B. GM has made multiple payments since July 2009. The final payment was $5.8 B ($4.7 billion to the US Treasury, and $1.1 billion to Export Development Canada).
Why did GM pay the loan early – doesn’t the company need the money?
GM believes it’s important to pay off debts as soon as possible to further build consumer and taxpayer confidence in the company. The company is able to pay back the loan because consumers are responding to our newest launches, and sales are improving. U.S. sales performance is tracking upward, indicating growing consumer receptivity to returning to GM showrooms. Encouraged by these trends, GM believes the business is turning in a positive direction.
What was the money used for? Was it a good investment?
The loan money went toward supporting new GM’s operations, including investing in plants, products and jobs so the company can design, build and sell the world’s best vehicles. We are able to do this because our business plan is working and our cars are selling. While there is more work to do, the company is making solid progress toward achieving this vision.

You can read GM's own press release about the loans here