North American automotive giant General Motors reported a loss of $1.2 billion in the third quarter on Monday, surprising analysts. The company, which reorganized after bankruptcy caused by the economic crisis, stated that the loss occurred despite a revenue increase to $28 billion, which is five billion more compared to the previous quarter.
Since 2005, the Detroit-based company has lost at least $90 billion and was forced to file for bankruptcy and seek a large loan and direct assistance from the U.S. government. In the morning, The Wall Street Journal reported that GM plans to start repaying the $6.7 billion loan from the U.S. government by the end of this year. The paper, citing an industry source, stated that GM would repay Washington $1 billion in quarterly installments, which would allow it to pay off the entire loan by mid-2011. GM is also preparing to repay a $1.4 billion loan granted by the Canadian government, at a repayment rate of $200 million per quarter, WSJ reports. The $6.7 billion loan is not included in the $50 billion in government assistance that GM received from Washington. With this assistance, the government acquired a 60 percent ownership stake in the company. The government plans to sell this stake after GM’s shares are relisted on the stock exchange. (H)
