GM repays US and Canadian Government

Discussion in 'Politics, Religion, Social Issues' started by quagmire, Apr 21, 2010.

  1. quagmire macrumors 603

    quagmire

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    #1
    General Motors Company has repaid the loans in full with interest* which is 5 years early of the required repayment deadline.

    This along with the strong possibility of pulling off a profit for the year is very good news for GM. :)

    http://media.gm.com/content/media/u...ontent/Pages/news/us/en/2010/Apr/0421_fairfax

    http://www.youtube.com/watch?v=SSNPFVLIWjI&

    * The US government still owns a 60% and the Canadian a 20% stake in GM. The rest of the money will be repaid when the IPO is issued and the Treasury and the Canadian government decides to sell their stakes. But, GM is officially debt free.
     
  2. mcrain macrumors 68000

    mcrain

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  3. NT1440 macrumors G4

    NT1440

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    #3
    Wow, thats actually kind of impressive. It's kind of sad that it took the whole thing nearly falling apart for GM to finally start making **** people want to buy again. They actually have some very nice vehicles now.
     
  4. rdowns macrumors Penryn

    rdowns

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    #4
    Herein, my little buddy is no longer here to make threads like this fun. :D
     
  5. leekohler macrumors G5

    leekohler

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    #5
    I'm not going to weep over that.

    So much for "socialism".
     
  6. quagmire thread starter macrumors 603

    quagmire

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    #6
    Oh no, it is still socialism as the US still owns GM.

    It is when the IPO is issued and the US sells its stake is when socialism has ended. :p I suspect though the sell off will be in stages in order to prevent a single buyer to buy GM.
     
  7. abijnk macrumors 68040

    abijnk

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    #7
    Too bad their cars are still crap. :eek: Anyone want to buy an Aveo?
     
  8. quagmire thread starter macrumors 603

    quagmire

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    #8
    Sure. ;)

    [​IMG]

    And I don't know about crap. Our 4 GM vehicles have all been very reliable.
     
  9. flopticalcube macrumors G4

    flopticalcube

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    #9
    My Oldsmobile Silhouette is 10 years old and still runs great. I wouldn't buy a newer GM minivan, however. They are crap compared to the old ones and the competition.
     
  10. quagmire thread starter macrumors 603

    quagmire

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    #10
    What GM minivans? ;)

    GM exited the minivan market. Though I agree. Their minivans did suck.
     
  11. leekohler macrumors G5

    leekohler

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    #11
    Might I remind you all that I may be buying a Camaro within the next year? Don't crap on my muscle car. :)
     
  12. flopticalcube macrumors G4

    flopticalcube

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    #12
    Oh, you know, Chevy Venture, Buick something-or-other, Pontiac... (oh yeah, they're gone too).
     
  13. bobber205 macrumors 68020

    bobber205

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  14. flopticalcube macrumors G4

    flopticalcube

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    #14
    We could easily be having this discussion in "Current Events" or the general "Community" forum. Its getting boring fast...

    OT, I had a chance to drive a Saturn Outlook over Christmas and was very impressed.
     
  15. eawmp1 macrumors 601

    eawmp1

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  16. quagmire thread starter macrumors 603

    quagmire

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    #16
    Well I did anticipate it getting political over the controversy surrounding the loans to GM and owning a 60% stake in them. Then I remembered ITN is banned.....
     
  17. Dmac77 macrumors 68020

    Dmac77

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    #17
    This is good to hear. It doesn't mean that I or anyone in my family will be buying an American car anytime soon though.

    After dealing with GM, Ford, and Chrysler vehicles for the past decade and having numerous problems with every car from one of the big three, we switched over to Toyota. Granted we have only had the Prius for ~2 months, and the Camry for ~3 months, but already within that time we KNOW they are better cars than any of the American cars that we owned in the past decade. Every GM, Ford, or Chrysler that we have owned in the past decade has had a major problem within the first month of owning them (electrical system dying causing the headlights and dash lights to dye on the highway at 10 PM, faulty ABS systems, oil pans leaking, etc.); the Toyotas haven't given us any problems at all yet, except for some Ford workers harrassing me and my grandmother in a McDonald's parking lot for "killing good American jobs":rolleyes: (A ford factory was right across the street from the McDonald's).

    I'll also admit that part of the reason we switched over to foreign cars is because we do not want to support the UAW in anyway possible. We're not a union friendly household. But the main reason we switched was due to quality.

    If GM IPOs soon, I would consider putting some money into their stock, I really wish I had jumped on the Ford bandwagon earlier.

    Don
     
  18. quagmire thread starter macrumors 603

    quagmire

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    #18
    Well you are because your Prius is still Japanese built. :p

    Though that isn't a bad thing if quality is in your interest. It has to be noted that when Toyota started to use more US parts and started to assemble more vehicle in the US is when the quality of their vehicles started to drop.
     
  19. Dmac77 macrumors 68020

    Dmac77

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    #19
    I know that, in fact 95% of the Prius parts are from Japan and it is 100% assembled in Japan (according to the window sticker). I wouldn't be driving a Prius if GM, Ford, or Chrysler made a car that was well made, gets well over 50 MPG (my average is 57 MPG), and that isn't made by someone who makes $40+/hour for pushing a button. When one of the American automakers meets those requirements, I'll drive a car made by them.

    Chrysler doesn't make a car that gets over 30 MPG; how can they expect to be competitive when almost all of Toyota's and Honda's cars get over 30 MPG? GM and Ford have made some progress in this era, but IMO it's too little too late. I still think we should have let GM and Chrysler fail, and die.

    Don
     
  20. quagmire thread starter macrumors 603

    quagmire

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    #20
    The good thing about GM's Chapter 11( besides wiping away their massive debt) is that it gave GM leverage over the UAW. Out of the Big 3, GM has the best deal with the UAW. Their workers are now on equal ground as Toyota's in regards to pay. The HealthCare benefits are now up to the UAW as well. While GM still contributes to their Health benefits, the costs have gone down quite a bit. Overall, it is said that GM has shed $30 billion in liabilities. GM does have the Volt coming in October which should get more then 50 MPG if not more depending on how often you charge it/how far you drive every day.

    GM has a future. Chrysler I am not so confident about. Their is nothing in their pipeline that is attractive besides the Grand Cherokee. The new 300/Charger is just a heavy refresh from the current design and not a redesign. Where GM's products already started to improve since 2006 with their new full size SUV's and trucks and the Saturn Aura( I can personally attest to the quality of the Aura as I own one). Then came 2008 with the new CTS, Pontiac G8( hey GM please bring the Commodore back to the US!) and Malibu. 2009 brought in the new SRX which is selling well. 2010 has brought the Camaro, Equinox, Terrain, and LaCrosse to the market which GM can not make enough of them to satisfy demand. They are working at capacity at the CAMI plant where the Equinox and Terrain are assembled at and GM has to add another shift at their Oshawa plant to assemble Equinox's. 2011 brings in the Volt, Cruze, Aveo, and Regal. 2012 will bring in a new Malibu and Cadillac XTS and I believe ATS.

    GM has the product to survive. It is up to the public to even give GM a look right now. If they look I will believe they will be surprised.
     
  21. Dmac77 macrumors 68020

    Dmac77

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    #21
    GM just needs to figure out a way to make the public look. Their cars were subpar at least until the mid 2000s, and they alienated people like me and my family, and it's going to take a lot of work to even make people like me even think about about looking at a GM.

    I don't think the Volt is going to be popular. It's more expensive than the Prius or Insight, and no one knows how it will affect their electricity bill. With the Prius, I know that I'm not going to be spending more than $60 a month on gas, I can fill up twice in a month and go 1,000 miles in my Prius. How often am I going to have to charge a Volt, and how much is it going to cost me to charge it? I have a feeling that the cost of ownership for the Volt is going to be much higher than it is for a Prius or an Insight. Also, GM has said that they are going to be losing money on every Volt made; which bothers me.

    Don
     
  22. quagmire thread starter macrumors 603

    quagmire

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    #22
    Toyota lost money on the Prius when it came out and I bet Honda lost money on the Insight. New technology is expensive and companies have to accept they are going to lose money on some products. I don't expect the Volt to outsell the Prius anytime soon. I believe GM has stated annual production for 2011 is somewhere around 10,000 units. So even if demand was higher then the Prius, GM wouldn't be able to produce them fast enough to outsell the Prius.

    The cost to charge it shouldn't be that high. Remember electricity is cheaper then gas. It shouldn't cost you anymore then $10 to charge it( and that is a very generous estimate. GM has released estimates to charge it using Detroit's current electricity charges and I believe it was around $3 if not less to completely charge it, but I forgot the numbers at the moment). The battery will take you up to 40 miles( depends on how you drive and the accessories you have running) then a gas generator turns on to keep the battery at 30% charge and power the electric motors.

    Oh and I do agree GM has deserved the hole they dug themselves in. They produced crap back in the 1980's and then focused on SUV's and trucks in the 90's while neglecting their cars.
     
  23. OttawaGuy macrumors 6502a

    OttawaGuy

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    #23
    Now if only the Wall Street firms and the banks would follow suite.
     
  24. SactoGuy18 macrumors 68030

    SactoGuy18

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    #24
    I do think GM will likely survive, if only because I expect the Chevrolet Cruze (arriving in the US market this October) to be a hot seller. And thanks to the tighter EPA fuel economy mandates, Chevrolet will roll out the Orlando MPV in 2011, which uses the same platform as the Cruze sedan (but will likely use a 2.4-liter Ecotec engine rated at 182 bhp and six-speed automatic).

    In short, don't count out GM just yet, thanks to them now leveraging Opel's small car experience like Ford has been since 2006.
     
  25. jessep28 macrumors 6502

    jessep28

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    #25
    GM cars are getting better. I bought a brand new Chevy Malibu last year and really enjoy the car.
     

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