GM’s new CEO, Daniel Akerson, said that it might the automobile manufacturing company at least two years to repay tax payers the money it had borrowed to bail itself out of bankruptcy during the recession period, and added that it was the goal of the company to have full intentions of making the repayment.
Akersonreplaced former CEO Ed Whitacre, on September 1st, who said in August that that he expected the stock to be sold all at once, but Akerson remains skeptical. Akerson was a former telecommunications industry executive and GM board member since July 2009, and GM’s fourth CEO in less than two years.
He however, emphasized that he does not expect much change in the management in the near future and expected considerable stability. The CEO said he knew that it would take consistent earnings from GM and several stock sales before the money is returned. GM received about $50 billion in all from the government.
It has repaid $6.7 billion of the money that the government put up to save the Detroit automaker and get it through its Chapter 11 bankruptcy last year.The remaining $43 billion was converted to a 61 percent ownership stake, according to the Associated Press reports.
GM made $2.2 billion in the first half of the year, a strong sign to investors that it is much leaner and healthier than it was before bankruptcy. It has also recalled 400 laid off factory workers for its Spring Hill, Tenn., manufacturing plant.