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GM aims to repay loans
GM aims to repay loans, reinvest in itself
Posted on Tuesday, November 17th, 2009 at 12:24 PM EST. (Employee News)
Post-bankruptcy General Motors Co. is strong enough now that it can invest more in designing new vehicles and more aggressively advertising the company’s products, the Detroit Free Press reported.
GM’s improving financial picture was illustrated Monday by its announcement that it generated $3.3 billion in operating cash in the 3 months following bankruptcy and that it will begin repaying government loans next month, the paper said. The amount of cash GM has on hand increased to $42.6 billion—compared with the same period a year ago, when it had only $16.2 billion left and faced possible liquidation without U.S. government help, the Free Press said.
The new cash level “really allows us to reinvest in our business,” GM CEO Fritz Henderson said Monday, after months of cost cutting, the paper said. Despite the positive signs, GM lost $1.2 billion between July 10 and Sept. 30. Corporate restructuring expert Van Conway praised GM’s results in the story, saying it’s encouraging that GM is accumulating cash just 90 days out of bankruptcy “It’s all about baby steps,” he told the paper. (Detroit Free Press)
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Rick
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