Wednesday, April 21, 2010

The General pays off its loan. 5 years early!

More good news.

General Motors has repaid $1.4 billion in loans it received from the Canadian and Ontario governments 5 years ahead of schedule and it expects to repay another $8.1 billion to Canada for money it received in exchange for large stakes in the company. Canada now owns roughly 12 per cent of the company and the U.S. government owns 61 per cent.

GM plans to repay both with a public stock offering, perhaps later this year.


CanadianSense said...

I am still waiting for GM to deliver a Camaro as part of my ownership.

I was critical in 2009, when the Government, opposition spent so little time discussing the loan and ownership bailout.

The key is a good slate of models and lowering their legacy costs (Pensions) vs other competitors.

This should ease a "tiny bit" of discomfort from the fiscal conservatives and libertians.

maryT said...

OT, but the Bloc lost their vote re their right to have 25% of seats in the HofC. Also defeated, the Right to Die with Dignity.
And who decided to offer an apology to Somalia, did the GG do it on her own, as a parting jab, or was it by the PM.

Ardvark said...

The GG had go ahead from the PM for the apology.

Thucydides said...

We will never get our money back:

The politically fixed pension and benefit costs (Democrat payback to the UAW), coupled with the declining market share guarantees they will be back cap in hand for another bailout, then another, perhaps as soon as the 2010 midterms are over (asking for money now would make the defeat of Democrat politicians all the more certain and cost the UAW their meal ticket).

Canadian taxpayers get to fill the CAW gravy train as well, since they can use blackmail (subsidize us or Oshawa will close up and fall into the lake) in tandem with the American head office.

Ardvark said...

We did get our money back.

The trick question now is:

What will our 12 % share that we are on the hook for be worth in 1,2 or 3 yrs?