GM to repay $6.7bn loan from Dec. 31

The repayment installments, which start Dec. 31, will be made every quarter until $6.7 billion loan is repaid, said a source close to the matter.

"The reason GM is in a position to do that is that they have seen performance that has been modestly ahead of what the expectation was when GM went into bankruptcy and emerged from bankruptcy," said the source on conditions of anonymity.

GM ahead of repayment plans
GM had ample time and was not required to make payments till July 20, 2015.

GM Chairman Edward Whitacre Jr. said in a speech last week that the company felt a "sense of urgency at GM to repay the money we owe as soon as possible", and said the company could begin by this year.

"We can pay that back, and I can't tell you when, but it wouldn't be very long and it is sooner than you think," he said.

GM received a $50 billion bailout from the Treasury last December, out of which it agreed to pay back in two modes; a $6.7 billion senior note and a 60 percent equity stake. The equity due in July will be sold by the Treasury once GM launches an IPO.

GM has $13.4 billion in an escrow account currently left from the U.S. bailout, enough money to augment the health of its balance sheet. Thus the company is quite sound and is well ahead of its plans of repayment.

The Detroit automaker recently also got a boost from the "cash for clunkers" program.

GM restructuring its brand
GM’s sales increased this year October (after January 2008), and its market share jumped by 20 percent. Sales of cars and trucks improved tremendously, reporting a 6.6 percent increase.

The automaker is planning to reduce the number of brands from eight to four; it will retain Chevrolet, Cadillac, Buick and GMC. It will also be keeping a full ownership of Adam Opel GmbH division.

"GM’s decision to keep Opel is also a sign that the new GM is performing better than earlier expected," said Masatoshi Nishimoto a Tokyo-based analyst at auto consulting company CSM Worldwide.