GM: Bailout Pay-Back Will Take Time

VOA Breaking News
September 16, 2010

The new chief executive at General Motors says the automaker will not be able to repay its government bailout all at once.

GM’s Daniel Akerson told reporters in Detroit Thursday that even though GM has become more profitable, it will likely take several years for the largest U.S. car company to reimburse the full $50 billion in emergency loans.

Akerson took over at GM earlier this month and is the automaker’s fourth chief executive in less than two years.

The company has already repaid nearly $7 billion to the taxpayers.

It expects to start selling shares in the company to the public later this year. That process would allow the U.S. government to start shedding its 61 percent stake in GM and recoup more of the bailout money.

The chief executive of another large U.S. automaker said Thursday that his company could start selling stock late next year.

Chrysler CEO Sergio Marchionne is also the chief of Italian automaker Fiat. He spoke after Fiat shareholders approved the company’s plan to separate its industrial vehicle and consumer vehicle businesses.

Marchionne has said the split will help the Fiat-Chrysler partnership focus on creating a more successful global car company.

Marchionne’s goal is for the car companies to produce 6 million vehicles a year.

Like GM, Chrysler received an emergency bailout from the U.S. government, worth about $10 billion. Some information in this story was provided by AP, AFP, Bloomberg and Reuters.