GM Won’t Commit to Bailout Repayment… After Claiming Bailout Repayment Was Already Made
Do you remember the controversial ad earlier this year where GM CEO announced that his company had paid back their government loans in full?… Then later we find out that they paid back only $8 billion of the $52 billion they borrowed?
…And, then we found out that GM paid off the bailout money by dipping into a separate bailout loan.
Now GM says it’s not sure if the company will pay off its bailout.
General Motors’ new stock got a good start out of the gate Thursday, opening up 6% to $35 from its offer price in its first trade…
…New CEO Dan Akerson said this was the right time for the company to go public again, but stopped short of promising that taxpayers would be paid back with future stock sales.
In January, then-CEO Ed Whitacre promised that taxpayers would be repaid and might even make money on the bailout.
“I think the government’s investment is well placed and I think they’ll make a lot of money,” Whitacre told CNNMoney on the floor of the annual auto show in Detroit. “It won’t be too long.”
But Thursday, Akerson, who succeeded Whitacre as CEO in September, was more cautious when speaking to CNNMoney on the floor of the New York Stock Exchange Thursday before the start of trading.
“I don’t know where the market is going to be a year or two down the road, so I can’t make such a bold statement,” he said. “Sure, I’m hopeful, and I’m not saying it can’t happen. I think the company is well positioned … so things look good for General Motors.”