GM Debt Free? Not Yet

Ok, so GM paid off its 7 billion in direct loans from Canada and the U.S. ahead of schedule.  However, don’t forget that GM received 43 billion in TARP bailout money in 2009 which was converted into equity in Chapter 11 bankruptcy proceedings.  Now the U.S. treasury owns a little over 60% of GM; Canada around 12%.  When shares of GM go public, and this may come as early as the summer, the two governments can get out of the car business and recover some if not all of its investments.  And of course this would be good for taxpayers and another victory for the Obama administration.  But the success of the IPO depends on whether Mr. Whitacre can really turn around the auto giant, known in some circles as Government Motors.

Can GM turn the corner?  Are their cars good enough to win back consumers who turned to the Japanese in the late 70’s?  Would you buy a Chevy Malibu, Impala, or Silverado?  Or how about a Dodge Charger or Neon.  Do they even make the Neon anymore?  I’d like for GM to bring back the Dodge Colt and the Dodge Dart.  Now may be the best time ever for GM to pick up customers as ailing Toyota struggles to regain its reputation for quality.

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