posted by GM Fan on Apr 29
After many years of trying to get out of its own hole, General Motors finally wraps up its payment to the US Treasury and Export Development in Canada. The company was also able to invest $257 million to prepare its Malibu plants in Kansas (primary), Fairfax and Detroit Hamtramck (secondary). GM paid a total of $5.8 billion, with $4.7 billion owing to loans made from the US and the remaining $1.1 billion to Canada. According to Automotive News reports, the US government still holds equity stakes in GM.
The company’s ability to pay back ahead of time is a sign that GM’s financial plan is working, says GM CEO Ed Whitacre. This is definitely good news for GM investors around the globe. Whitacre also stressed on the importance of letting their investors reduce their equity investments.
GM’s sales shot up to 36%, though, compared to the previous year. The popular crossover models including the 5th generation Camaro, the mid-sized Malibu and Lacross, and the range vehicles Equinox, Traverse, Acadia, and SRX all contributed to the increase in sales growth.
Based on the recent press release of GM, Fairfax will serve as the company’s primary source of the next generation of Malibu models. Detroit Hamtramck, which currently produces Cadillac DTSand Buick Lucerne, will also be provided with equipment to produce the Malibu. Also stated in the press release is the company’s assurance that the Chevrolet will be able to meet its market demand.
GM’s Malibu-related investments totaling $136 M in Fairfax and $121 in Detroit cover machinery, equipment, tools and facilities.