Automaker closes deal with government. CEO Henderson: 'We'll work hard to repay the trust, and the money, that so many have invested in GM.'
After a six-week trip through bankruptcy, the "new" General Motors was born Friday owned by the government and free of tens of billions in debt and shed of unaffordable brands, dealerships and plants.The sale of the valuable assets of the old company to the new GM was completed Friday morning. "This is an exciting day for General Motors, one that will allow every employee, including me, to get back to the business of designing, building and selling great cars and trucks and serving the needs of our customers," GM Chief Executive Fritz Henderson said."We deeply appreciate the support we've received. We'll work hard to repay the trust, and the money, that so many have invested in GM," Henderson added.But he said he couldn't promise that GM would repay the $50 billion the government has already given or promised to GM. "Our performance over time will determine if the taxpayers are made whole," he said.The company hopes to beat a 2015 deadline for repaying about $6.7 billion in government loans,
Henderson said.But Treasury's ability to recover most of the rest of the $50 billion will depend on the future market value of the government's large equity stake. The company's stock is not expected to trade publicly until 2010 at the earliest.Henderson told CNNMoney Friday that he is confident the company will not need government assistance beyond the $50 billion already committed to its turnaround.