GM pays off loans ahead of schedule, CEO sees major turnaround underway
Published on Wednesday, April 21, 2010
General Motors Co. chief executive officer Ed Whitacre said the repayment of US$5.8-billion in government loans and his investment in U.S. car plants show a turnaround is underway at the biggest domestic automaker.
"Our plan is working," Mr. Whitacre, right, said yesterday at GM's assembly factory in Fairfax, Kan. "GM has paid, in full and with interest, the loans made by the U.S. Treasury and Canada in July. This is five years ahead of schedule."
Mr. Whitacre used his appearance at the Kansas facility to confirm the final repayments on loans due by 2015 to the U.S. and Canada, which GM wouldn't acknowledge when the plan was reported on April 19.
Chrysler revenue up 2.7% over last year
Chrysler Group LLC, the U.S. automaker run by Fiat SpA, said it posted a US$143-million operating profit in the first three months of the year after cutting costs and introducing a big pickup truck.
Revenue rose to US$9.69-billion in the first quarter, up 2.7% from the final three months of 2009, the Auburn Hills, Mich.-based automaker said in a statement.
Chrysler reported a net loss of US$197-million, compared with a net loss of US$2.69-billion in prior quarter. After emerging from bankruptcy on June 10 through the end of 2009, Chrysler said it lost US$3.8-billion on revenue of US$17.7-billion.
Fiat obtained a 20% stake in Chrysler after the company reorganized in Chapter 11 with US$15-billion in government support.
Source : Bloomberg News