General Motors (GM) has repaid its $8.4 billions loan from the United States, Canadian and Ontario governments two months ahead of the schedule the company put for itself and five years ahead of the deadline set by the aforementioned governments.
"GM's ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track," said GM chairman and CEO Ed Whitacre in a statement. "We still have much hard work ahead of us, but we are making progress toward our vision of designing, building, and selling the world's best vehicles.
As further proof of the company's improved financial health, GM will also be investing $275 million in its Fairfax, Kansas and Detroit Hamtramck assembly plants.
According to The Covenant Car Company, Inc., (TCCCI), the exclusive distributor of Chevrolet vehicles in the country, GM credits its renewed success to the burgeoning sales in its North American market and to the strong sales in its key global markets in Asia. For TCCCI, the local market's positive reception to the Chevrolet Cruze has seen over 70 units of their new compact sedan roll out of their dealers' showrooms floors since its launch in February.
GM received the loans last year to combat the global economic downturn that heavily affected the American automotive industry.