GM Boss Vows to Repay Bailout Loans

Automaker Received More Than $50 Billion in Taxpayer Money to Avoid Collapse

(AP)  General Motors Co. remains committed to repaying its billions of dollars in government loans, though it's too soon to say when that will happen, the automaker's chairman said Tuesday.

"Can GM pay back its loans? You bet," Ed Whitacre said during an address at Texas Lutheran University in Seguin, Texas. "I can't tell you when, but it won't be very long."

But Whitacre added that the company, which has received more than $50 billion in taxpayer bailouts and is majority-owned by the U.S. government, has a long way to go before it's in "fighting shape" again.

Both the government and GM have said they expect the automaker to become publicly traded sometime next year. However, Whitacre said Tuesday the timing of any initial public offering of GM stock remains uncertain and depends on when the company returns to profitability.

Whitacre said a stable economy remains the "determining factor" for GM. He also said higher employment levels and a thaw in the credit markets were necessary for the company's business to improve.

"Increasing employment is the fastest and surest way to grow," he said.

Government investigators have challenged the likelihood that taxpayers will recoup their investment in GM and in Detroit rival Chrysler Group LLC. The Government Accountability Office said in a report issued last week that the automakers' value would have to soar to levels they didn't even approach when they were healthier for the taxpayer loans to be repaid.

However, Whitacre, who became GM's chairman after it exited bankruptcy in July, highlighted restructuring efforts made at the company, including work force and brand cuts. He also noted the company's modest lift in October U.S. sales - its first month-over-month sales increase in almost two years.

Whitacre also defended the company's last-minute decision this month to keep its Opel brand. The automaker had been in talks to sell a majority stake in the European brand to a group led by Canadian parts maker Magna International and Russian lender Sberbank. But GM changed its mind because its financial position had improved enough to warrant keeping the brand, Whitacre said.

"How could you be a global player and not play all over the globe?" Whitacre said. "Our financial fortunes had improved enough that we rexamined that."

Whitacre, who is the former CEO and chairman of telecommunications giant AT&T, said he did not initially want to lead GM when he was approached with the offer. "I was retired. Why would I want to do that?" Whitacre said, but added that he changed his mind after reflecting on the need for a strong U.S. auto industry.

Whitacre noted that the government has largely kept its hands out of GM's day-to-day business despite its controlling stake, adding that was a condition for his accepting the chairman position.

[stillunbanable]

"Will this "repayment" be with interest?
Interest like the interest on my credit card? 22.95%???
I doubt it."


Right! This is just a marketing gimmick to try and gain back business. Garbage Motors and Chryslage should have followed the foot steps of Ford. I could care less if GM flops. All of the cars in my driveway are Ford/Lincoln products. I work in america so I buy american products, and I am glad to still have an american alternative to GarbageMotors or Chryslage.

[jgg000015]

let us know when you pay it back. everything else is hot air.

[BillCue]

The more he told us of his honesty, the faster we counted our spoons. Most likely GM is headed south.

[jtdev1]

Will this "repayment" be with interest?

Interest like the interest on my credit card? 22.95%???

I doubt it.

[rightbehind]

I think they will provided the economy can hold.

[wyodutch]

I just took delivery of a 2009 GMC Sierra 1-ton SLT. Diesel, 4X4, black leather interior... Bose sound, etc..
.
Thank you General Motors and thank you, United Auto Workers union for a diamond-class vehicle... Made in America, by my fellow Americans.
.
The hysterical attacks on the wages of the auto workers are simply an indication of America's herd mentality. People like "Golfered" work for sub standard wages and instead of saying "I want better pay, like the auto workers."... They say.. "I want the auto workers pay to come down to my level."

[golfered2]

They will never be a successful and profitable company as long as the UAW tries to put the company into bankruptcy with the high wages, pension and healthcare demands.

[retm-w]

And if your employer offered you the same benefits and wages, you would turn them down? The UAW opened the contract and took consessions when the company ask for the bailout and filed bankruptcy. Or don't you bother to keep up with the business news.

[USA_is_back]

OR - They will never be a successful and profitable company as long as UPPER MANAGEMENT tries to put the company into bankruptcy with the high wages, pension, multimillion dollar BONUS'S and healthcare demands.

[lami987]

I am glad government stop excessive executive pays for GM. Now GM's CEO is paid less than $1 million, that is the same as that of Toyota's CEO. The rightfully fired ex GM CEO Wagoner was paid more than $15 million while he ran the company to bankruptcy. Ford is likely to face dispute between labor and management because its pay structure is so biased to benefit its management. Ford's CEO is being paid more than $39 million while its management is trying to get labor to reduce labor cost.