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GM loses $1.2B, but adds to reserves

Detroit -- U.S. automotive giant General Motors said it lost $1.2 billion in the quarter it emerged from bankruptcy but offset the negative by boosting cash reserves.

After a long streak in which the company was hemorrhaging cash, GM added $3.3 billion to its reserve account July through September.

GM has $42.6 billion in available cash and said it intended to begin repaying loans to the U.S. government and Canada, the company said in a statement.

GM emerged from bankruptcy July 10 with significant shares owned by the governments that helped with billions of dollars of capital.

GM Chief Executive Officer Fritz Henderson said, "We have significantly more work to do, but today's results provide evidence … of (a) solid foundation."

Revenues were up 21 percent compared with the second quarter, which was largely spent in bankruptcy.

GM said it would pay the U.S. government $1 billion per quarter until its $50 billion debt to U.S. taxpayers is paid. It would begin with a payment in December. GM will also pay the Canadian government $200 million per quarter until it erases a $1.4 debt with Ottawa.

Copyright 2009 by United Press International.

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