A Toast 2 Wealth

It is great news for General Motors in this recession.  Although, the automobile company lost 1.2 billion dollars, they have the funds to start repayment.  They evaluated they are able to start paying back the United States by the overall results.  Not many automobile companies can announce such good news.

General Motors plan to pay $1 billion to the U.S. Treasury in December, along with $192 million to the Canadian and Ontario governments.  The company borrowed $6.7 billion in loans from the U.S. Treasury as during bankruptcy proceedings with the assistance of Canadian and Ontario.  Payments could end by June of 2010.

Although, this is only a fraction of the $50 billion what was received from U.S. taxpayers since the end of 2008, it is a good start.  The U.S. government owns a majority stake in GM and taxpayers may not get their investment in return, but that is only speculation.  Taxpayers may benefit from future sales that will assist what they have lost when General Motors decides plan a strategy that will repay taxpayers in years to come.

Although General Motors is increasing in sales, there is still a financial struggle.  They said revenue from auto sales plunged 25% compared to a year earlier, as sales during the first nine days of the period at the old GM along with the remaining days of the quarter at the new post-bankruptcy GM came to about $28 billion and revenue from auto sales in the third quarter were up $4.9 billion, or 21%, from the second quarter.

Unfortunately, the observation of General Motors ever solely owning their company ever again without the assistance of the United States may never occur.

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