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GMs CEO: No more federal money needed
[Iran Press TV Latest] The chief executive of the major US car maker General Motors says it needs no more federal bailout money to continue operations Fritz Henderson told congressional and Obama administration officials in Washington on Wednesday that based on "any reasonable planning scenario," the automaker will not ask for more federal aid, said The Washington Post. "The amount of financing provided was sufficient," he said. Henderson reiterated that the US government will recover all of its $50 billion investment in GM, which is in the form of loans and equity by 2015. "The loans are due in 2015. We are looking at all kinds of ways that would actually accelerate that, he said. "Then over time the question is, How do you realize a return on the equity? That is a function of how does the company perform. If we get our job done, I think the government has an excellent chance of getting a return on its investment," he added. To save the US auto industry and hence thousands of jobs, the government injected billions of dollars into the ailing sector. Despite the company's claim that GM does not need more federal aid, earlier news this week suggested that the US government is set to consider yet another bailout package for the automakers. According to the Detroit News, "The Treasury Department plans to inject up to $5.6 billion in new capital in GMAC, the onetime finance arm of General Motors," a government official confirmed late Tuesday. "The new government infusion would be on top of the $12.5 billion in government support extended since December. In May, the Treasury Department injected $7.5 billion in GMAC, took a 35.4 percent stake in the company and appointed two directors." Posted by: Fred 2009-10-30 |
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