Thread: GM adds
View Single Post
      04-27-2010, 09:44 AM   #9
I am Gundam
quagmire's Avatar

Drives: 2017 Camaro 2SS
Join Date: Jun 2007
Location: USA

iTrader: (0)

Originally Posted by HoustonScott View Post
All that said, GM lost another 4.5B this year, at that rate the loans will never be paid. If they made 5B a year it would take over 10 years to repay. Why would anyone think the government is going to get their money back?

The loans have been repaid. GM is officially out of debt with ~$30 billion in cash reserves. The rest of the money is in equity. GM is not responsible for paying that money back. When GM's IPO is issued and the government slowly sells their shares( they can't just sell in large sums or the stock value will plummet) and that is when the government will get the rest of the money back.

GM in Q1 will have a small loss or small profit. 2010 should be profitable.