GM to repay $1 billion loan to US Treasury
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General Motors, world's largest car maker is expecting to repay the $1 billion loan to the US Treasury, next week, which it had taken at the time of recession in year 2008. By repaying the loan the company is trying to settle the loan with the government ahead of schedule, reported the Wall Street Journal.
Last November, GM had said that it would begin making quarterly payments of $1.2 billion to the US Treasury and the governments of Canada and Ontario in December.
In year 2008 when the company was struggling with biggest ever credit crunch and lowering sales, it received a loan of $50 billion from government to restructure its operations. US Treasury is 61 percent owner of GM stock.
GM has recovered to a good extant from the state of bankruptcy in year 2008 with launching its new vehicles worldwide. The company recently launched its small car model Chevrolet Beat in India the Delhi Auto expo. Chevrolet Beat model is coming with a competitive price tag of less than Rs 4 lakh. Beat is competing with popular small cars in India including Maruti Wagon R, Ford Figo, Volkswagen Polo and Hyundai i10.
