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GM to start loan repayments early | GM to start loan repayments early |
(40 minutes later) | |
The US carmaker General Motors (GM) has said it will start paying back its government loans earlier than expected. | The US carmaker General Motors (GM) has said it will start paying back its government loans earlier than expected. |
It will make its first payment of $1.2bn (£717m) to the US government in December. GM had not been required to begin repaying the loan until 2015. | It will make its first payment of $1.2bn (£717m) to the US government in December. GM had not been required to begin repaying the loan until 2015. |
The news came as it reported a loss of $1.2bn from 10 July, when it emerged from bankruptcy, to 30 September. | The news came as it reported a loss of $1.2bn from 10 July, when it emerged from bankruptcy, to 30 September. |
GM chief Fritz Henderson said the firm still had work to do but the results were evidence of a "solid foundation". | GM chief Fritz Henderson said the firm still had work to do but the results were evidence of a "solid foundation". |
He pointed out that GM had a healthier balance sheet with lower debt levels. | He pointed out that GM had a healthier balance sheet with lower debt levels. |
GM owes the US government $6.7bn and the Canadian government $1.4bn. Canada will also receive its first payment in December. | GM owes the US government $6.7bn and the Canadian government $1.4bn. Canada will also receive its first payment in December. |
In addition, Germany will be repaid the outstanding 400m euros (£358m) that it lent in support of GM's European business Opel. | |
GM changed its mind over the sale of Opel earlier this month. It had been planning to sell it to a group led by the Canadian car parts maker Magna, but decided instead to retain ownership. | |
'Modest growth' | |
Sales in the US were boosted by the government-sponsored "cash for clunkers" incentive scheme. | Sales in the US were boosted by the government-sponsored "cash for clunkers" incentive scheme. |
GM said the market in China was proving to be a particularly strong contributor to its results. It is predicting "modest growth" in the global car industry in 2010. | |
In a conference call, Mr Henderson said GM, which is 61%-owned by the US tax payer, was preparing for a share offering in the second half of next year. |