Kansas City, Kansas – General Motors has made its final payment of US$5.8 billion to the U.S. Treasury and Export Development Canada, paying back its government loans in full and ahead of schedule. The payment includes $4.7 billion to the U.S. Treasury, and $1.1 billion to Export Development Canada.
The announcement was made by GM chairman and CEO Ed Whitacre at a ceremony in Fairfax, Kansas to announce an investment of $257 million in Fairfax and Detroit Hamtramck assembly centres. The investment will prepare Fairfax to build the next-generation Chevrolet Malibu and make Detroit Hamtramck a second source for the model. Fairfax currently builds the current Malibu and the Buick LaCrosse.
As part of the launch of the new GM, the U.S., Canadian and Ontario governments provided loans of $8.4 billion and took equity stakes in the new company. The latest payment completes the payback of the loans.
“GM’s ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track,” Whitacre said. “It is also an important first step toward allowing our stockholders to reduce their equity investments in GM. We still have much hard work ahead of us, but we are making progress toward our vision of designing, building and selling the world’s best vehicles. We appreciate the support the taxpayers have given GM, and our new great products are tangible results of that support.”