The Detroit News is reporting that General Motors is set to buy back $2.1 billion in preferred stock from the United States government.
Washington - General Motors Co will announce this afternoon that it is buying back , people briefed on the matter said.
The move is another step by the Detroit automaker toward repaying its $49.5 billion bailout.
GM has previously paid $6.7 billion in outstanding government loans, and just over $700 million in dividends and interest.
No word yet on the share price. It needs to be $131/share for the government to break even.
UPDATE: The Detroit Free Press is reporting that GM has also secured a $5 billion line of credit and is taking other positive steps:
General Motors today announced a series of financial actions to improve its balance sheet, including buying back $2.8 billion in GM shares from the U.S. Treasury, making a large contribution valued at $6 billion to its pension plans and paying back a $2.8 billion loan to the UAW, among other actions.
GM also has completed a $5 billion credit line with a syndicate of banks…
Completion of a $5 billion, five-year revolving credit facility with a syndicate of banks, which provides an additional source of backup liquidity.
In other fantastic news for the US auto industry we have:
LANSING -- General Motors hopes to add about 600 jobs to its Lansing Grand River plant to build a Cadillac sedan smaller than the CTS, CEO Dan Akerson said today. That would bring the total number of U.S. jobs GM has created or restored since its bankruptcy to 7,900.
GM will invest $190 million in the Lansing plant to tool for the car and it hopes to add a second shift, Akerson said. That would bring Lansing Grand River employment to 1,700.
Akerson said the desired second shift would provide $32 million in additional payroll taxes, $320,000 in local income taxes and $1.4 million in state income taxes.
Lansing— State tax incentives approved today pave the way for about $2 billion in investments by Chrysler, Ford and General Motors and the creation and retention of thousands of auto jobs.
In quick succession, officials from Michigan's auto companies made short presentations to the Michigan Economic Growth Authority. The board approved tax incentives for all three.
Chrysler will spend $1 billion in Michigan facilities — $850 million on its Sterling Heights assembly plant that was due to close next month. That plant will be renovated to produce new lines of midsize cars. Chrysler also will invest $150 million into the Global Engine Manufacturing Alliance plant in Dundee.
Ford will pump $850 million into four Michigan plants, adding 1,200 jobs and retaining others. The plants receiving investments are Van Dyke Transmission in Sterling Heights, Livonia Transmission, Sterling Axle and Dearborn Truck.
General Motors will invest $152 million as part of the tax incentive deal, including $112 million at the Warren Tech Center that will retain 900 jobs.
Chrysler is planning a Fiat-based 40 miles-per-gallon car that will go into production late next year at Belvidere, Ill., say suppliers and consultants familiar with the plan.
A Chrysler spokesman declined to comment. But the first model, based on Fiat's C-EVO underbody, will replace the Dodge Caliber compact crossover, sources say. The car will resemble the Alfa Romeo Giulietta, which Fiat introduced in Europe earlier this year.
Ford today said it earned $1.69 billion, or 43 cents per share, for the July-September period — its largest third quarter profit since 1990.
The Dearborn automaker also said it used $2 billion in cash to pay off debt in September and will reduce its debt by a total of $5.6 billion by this Friday when it makes a cash payment to the UAW’s retiree health care trust fund, known as a Voluntary Employee Beneficiary Association.
With that payment, Ford will have met all of obligations to the VEBA, which the company and the UAW agreed to create in 2007.
BorgWarner reported Wednesday a third-quarter profit that was more than six times larger than last year. In so doing, it joined what is likely to be a long line of suppliers and automakers whose profits are increasing.
Lear and Federal-Mogul did as well.
Ford Motor Company announced Monday that the company plans to invest $850 million in four Michigan plants. They say their plans include the creation of 1200 Michigan jobs.
Of those, 900 jobs will be hourly manufacturing positions. Another 300 will be salaried positions.
The four plants are being upgraded as part of Ford's emphasis on six-speed transmissions.
And, finally, non-auto related but cool for Michigan nonetheless, George Clooney is going to film a movie here.
Gloom and doom has been the watchword in our state lately but, dang! These are some awesome headlines, eh?
I'm just sayin'…