Monday, November 16, 2009

GM Loses $1.1B: Repaying Loans With... Loans

General Motors announced that they have a $1.2B loss since they came out of bankruptcy through the end of Q3 09.

In what passes as good news these days, it "was one of the best quarters in a long time for the struggling auto giant and a definite positive for the future".

They do not mention that during the same period Ford reported a profit (all due to the cash for cklunkers program), yet GM managed to lose money.

CEO Fritz Henderson said: "We have significantly more work to do, but today’s results provide evidence of the solid foundation we are building for the new GM," "while unsatisfactory, were 'certainly better than our plans going into bankruptcy.' The quarterly results showed 'some signs of progress, some signs of stability.' "

Also passing as good news is that the company made an announcement that it will start repaying its bail-out loans. Hello, the company lost $1.2B in the quarter. Yahoo reports: "The company also says it will begin repaying $6.7 billion in U.S. government loans with a $1.2 billion payment in December. It could pay off the full amount by 2011, four years ahead of schedule, but the money will come from funds loaned by the government".

They are paying the loans with... loans?

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