Dingell Praises GM on Loan Repayment Start

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Veteran Congressman Asks: Why Are Republicans Rooting for GM To Fail?

November 16, 2009 -- Washington, DC - Congressman John D. Dingell (D-MI15) made the following remarks after General Motors (GM) announced the company would repay the United States more than $1 billion dollars next month, years earlier than required.

“Today, General Motors has come forth with good news. The company is on its way to fulfilling its promise to America’s taxpayers – much sooner than expected or required. The new GM has a healthier balance sheet, reduced inventories and a competitive cost structure, putting it on a path towards repaying its debts and rebuilding the company’s value. The company is better situated to deal with economic hardship.

"Because these changes and its exciting new models, GM is also better prepared to capitalize on improved market conditions when we do see economic turnaround. We got just a glimpse of that during the cash-for-clunkers sales. Americans are looking at GM cars again and they’ll feel even better about the company as it rebuilds its financial standing. While there is a long way to go, today’s announcement is good news for both our autoworkers and concerned American taxpayers.

“Unfortunately, Republicans want to focus on the negative. Yes, the new GM, still struggling to shed the burdens left from the old GM, has not yet turned a profit. Today’s announcement puts GM ahead of schedule in paying off their debt to taxpayers and restoring the company’s viability, but you wouldn’t know that from GOP Chairman Michael Steele’s comments today. At a time when Republicans should be saluting an American company paying back taxpayers, fulfilling commitments and finding its footing, Steele prefers to go for political points and slam President Obama. The President has been truly courageous in the way he has tried to reinvigorate the auto industry and protect American jobs. He didn’t just invest in a company or an industry; he invested in the millions of American workers. We know there are no guarantees right now, but these government loans are keeping millions of Americans working at a time when we need to protect every job we can. Steele and his cohorts have no solutions; all they offer is conventional criticism. Republicans want to keep talking about the high unemployment numbers, hoping we’ll forget these as the results of the failed policies of President Bush.”

GM plans to repay the United States, Canadian and Ontario government loans in quarterly installments from escrowed funds, beginning next month with an initial $1.2 billion payment to be made in December followed by quarterly payments until the debt is paid off. The United States holds a $6.7 billion debt, $2.1 billion in preferred stock and a 61 percent stake in the company as part of a $50 billion investment in the new GM.

Source: Congressman John D. Dingell