| For immediate release November 16, 2009 |
Contact: Erin Donar
202-225-3611
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| Kildee Statement on G.M. Repaying Gov’t Loans Ahead of Schedule | ||||
| WASHINGTON, D.C. – Today, General Motors announced that it plans to start repaying its government loans more than five years ahead of schedule and that it generated $3.3 billion in cash in the third quarter. Although the automaker did not post a profit, it exceeded expectations and increased revenue by 21 percent from the second quarter. As Co-Chair of the Congressional Automotive Caucus and a native of Flint, MI, the birthplace of G.M., Congressman Dale E. Kildee (D-MI) has worked tirelessly to return the company to productivity and profitability and welcomed this encouraging news. Congressman Kildee released the following statement: “Today’s announcement is an encouraging sign that the new G.M. has emerged from bankruptcy as a stronger and more viable company. Last winter, I was an active supporter of short-term government loans to help G.M. stabilize its operation and maintain jobs in our communities. With G.M.’s strong financial performance since its reemergence, the government’s loans to G.M. are proving to be a wise investment in our economy, not a government bailout as charged by some critics. G.M. is now fiscally stable enough to begin repaying its government loans as early as next month, more than five years ahead of schedule. It has also increased its cash on hand by $3.3 billion and is showing encouraging signs of progress. I have always said that what America drives, drives America and I am committed to a strong and vibrant domestic auto industry. The health of our auto industry is critical to the economic stability of our local communities, our state and our entire Nation. While there is still work to be done to ensure that G.M. returns to productivity and profitability, this announcement is encouraging news that G.M. is well on its way. I will continue to work with the Administration, G.M. and other stakeholders to protect our workers and auto communities and ensure the future success of this American icon.” Today, the new G.M. released preliminary financial results for its first 83 days of operation. It also announced its plan for repaying its loans from the U.S. government. Payments will be made in quarterly installments starting with a $1.2 billion payment to the U.S. Treasury in December. |
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