I have a feeling we're being lied to;;;;;; AGAIN

[gandrimp]

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Let me get this straight, GM lost money for like 5 years OR more in a row. So in 1 year they make all this money ? In a recession ?

FOXNews.com - GM Pays Off Debt to U.S.


Looks like they have paid off 8 billion but still owe 50 billion. In a recession ??

[DickIsGone]

Originally Posted by gandrimp

Let me get this straight, GM lost money for like 5 years OR more in a row. So in 1 year they make all this money ? In a recession ?

FOXNews.com - GM Pays Off Debt to U.S.


Looks like they have paid off 8 billion but still owe 50 billion. In a recession ??

From what I understand, they borrowed close to 65 billion combined (? I'd have to look it up) and they're paying back 12%/6.5 billion, yet calling it a complete payback.
Giethner must be doing the figures again using TurboTax.

Just one more reason why I'll never buy another GM truck.

But look at it this way, at least the feds aren't naming a naval vessel after John Murtha.

[Andy]

Yeah, that puzzled me also. That article states, "GM still owes $45.3 billion to the U.S. and $8.1 billion to Canada"... so if they still owe that much, how are they saying that they paid off the debt?? Granted, I never graduated high school, but from what I remember 45 billion in debt = 45 billion in debt.

[jriosa]

Andy - you have to understand the bailout funding was split - a large portion of it was converted to stock, which the government technically owns - hence their ability to have a control over GM. The stuff being repaid currently was cash for liquidity - paying suppliers, materials etc.

As to the ability to make a profit - well some of it is the dead cat bounce form Toyota, but a big chunk of change was transferring healthcare and pension costs over to the union, reducing their legacy debt that had to be funded.

[Andy]

Ah, gotcha. So the 45 billion is in stocks that the government will continue to own?

[jriosa]

Originally Posted by Andy

Ah, gotcha. So the 45 billion is in stocks that the government will continue to own?

Actually, the intent is for GM to reach a point of financial stability that they can create an IPO and have these shares traded publicly, the revenues of which would be to pay of the gov't, at which point the gov't would no longer be a controlling partner.

GM is HOPING to create an IPO later this year if things continue.

Now Chrysler is a whole other story.

[hsfbfan]

Chrysler was in a whole lot worse shape. Daimler and Cerubus drained them dry and there was NO new cars in the pipeline.

[Forest]

Originally Posted by hsfbfan

Chrysler was in a whole lot worse shape. Daimler and Cerubus drained them dry and there was NO new cars in the pipeline.

Bring on the Fiat 500