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General Motors feels in a good position to start paying back loans to the US Treasury and the Canadian government as its cash situation has improved and there are signs of stabilization of the automaker's finances, GM CEO Fritz Henderson told CNBC Monday.
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cnbc.com |
GM has cash in hand of $42.6 billion and will pay back the first $1 billion in the fourth quarter, and then it would pay $1.2 billion per quarter.
"We certainly feel that repaying the loan portion of the taxpayer support is a personal commitment," Henderson said.
"Given our liquidity position, we felt strongly that we can begin now. It's about starting giving a return to the taxpayer."
For the third quarter, the company, which recently emerged from bankruptcy, posted a net loss of $1.2 billion in the third quarter. Before special items, the loss was $261 million.
There are some encouraging signs of stabilization for GM's performance, Henderson said.
"But we lost money, so we're not at all satisfied," he added. Henderson refused to speculate on when GM may return to the black.
GM reported a positive operating cash flow of $3.3 billion in the third quarter but said that may be reversed in the fourth quarter due to one-off items such as paying the debts.
GM also said its European company Opel has already paid back around $0.7 billion of a loan it had received from the German government to help it during turbulence, and will repay the remaining $0.6 billion balance by the end of the month.
Henderson did not want to commit to a clear time for listing GM. "Our objective is to be ready in the second half (of next year) and then we'll see," he said.
The company's global market share was 11.9 percent in the third quarter, while its US market share was 19.5 percent, flat compared to the first half of the year.
GM finished the third quarter with US dealer inventories of about 424,000 vehicles.
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