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According to several sources, GM is planning to payback its US government bailout money ahead of its previously proposed schedule. The struggling automotive company has already repaid some of its debt and hopes to continue the prompt schedule into the near future.
Here is a link to the article:
http://www.msnbc.msn.com/id/36652465
I feel that this early repayment is a great strategy for raising consumer expectations of the company. If GM is able to live up to its new promise, hopefully other companies will also be encouraged to repay their government loans early.
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I think that its really promising that GM is making steps towards paying back their debt. This shows that they are taking the proper steps to reorganize their current system and get back on track as one of the nations largest companies.
ReplyDeleteI agree that this is a good sign. Of course, we have to remember that this is partly a PR strategy to 'look good' and it will be a while before GM can fully pay back its debts. I just hope this repayment isn't premature and this really is a sign that things are improving at GM
ReplyDeleteI agree with Robert aka "Bob" and it is definitely good in the consumer's eyes. Maybe we will see some better future stock performance..What I haven't seen though is GMC compact-cars or just cars. Chevy is their primary car builder but I think GM still hasn't gotten out of this SUV trend. Get it the gas mileage otherwise I think it would look good to see that GMC on a new fuel efficient car model. It might rid that negative view that their SUV's have gotten since their downfall...
ReplyDeleteI think we need to be careful with out optimism in this case. There is an update on this case: "The U.S. government still owns 61 percent of GM. The automaker is counting on a public stock offering to allow the U.S. government to begin recouping its remaining $45.3 billion investment. The Canadian government's $8.1 billion stake, which equals a 12 percent ownership interest, also could also be unlocked if GM sells shares to the public...taxpayers are still expected to lose about $36 billion on the bailouts of automakers, and $34 billion on that of insurer AIG, according to the Congressional Budget Office. Propping up mortgage finance companies Fannie Mae and Freddie Mac has cost taxpayers another $126 billion so far."So we should be optimistic, but cautious.
ReplyDeleteThis is encouraging for the automotive industry, like Matt said I hope that repayment of their debt isn't premature and actually hurt the progress of GM. There was a recent GM commercial saying that everything was paid back and they are looking forward to the future. If this is true it was be great for the economy.
ReplyDeletethis is a link to the commercial I am talking about, http://www.youtube.com/watch?v=SSNPFVLIWjI
ReplyDelete