If you have been paying attention to the news lately, then you probably know that GM last year was down the toilet and they actually had to take out a loan from the U.S government.  Well, I can tell you for sure that, that loan was just that a … loan and the government is expecting payment and GM is coming through!

Payments are being made constantly and with the first quarter of the year coming to a close, GM is paying $192 million to Canada and of course one billion back to the United States.  Another installment should be given on March 31st as well.

Personally, I think that GM is doing something good right now. They are getting things done and making up for their debts.

General Motors has been staying afloat all this time because of financial backing from the federal government until it ultimately needed to file for a bankruptcy last week.

Cheney revealed the matter during an interview with Fox News and said that Bush just did not want to pull the plug on the automaker which has been one of the pillars of the U.S. car industry.

According to him the government knew about the struggle of GM and has foreseen that eventually the carmaker will need to go through bankruptcy and some restructuring and renegotiate their contracts in order to survive.

The former second in command disclosed that the Bush administration worked on putting a package so it can keep its head above the water until the new administration takes over. The plan included the original bailout fund of $17.4 billion which gave Barack Obama’s team to have some buffer before addressing the issue and the eventual bankruptcy of General Motors.

The new GM will be re-emerging in about three months with the government of the United States having a 60.8% stake. The car manufacturer will be facing a multi-billion consolidated debt but is in shallower waters compared to the liabilities if they have not declared chapter 11.

When buying a new car, you can get rid of your old one with for the poor.

Woopwoop!

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