US No.1 automaker, General Motors Co. on Wednesday said that if the economy of US continues to recover from Covid-19 pandemic and the auto sector does not experience any shutdown in production then the company would be able to pay-off a loan of $16 billion by the end of this year.
Dhivya Suryadevara, Chief Financial Officer of General Motors said, “Obviously, it is still a very fluid situation as you know and we’re watching the virus, the economy and its impact on the overall industry very closely.”
GM expects that if the recovery continues the adjusted operating earnings in the second half of the year ranging between of $ 4 billion to $ 5 billion, resulting in the third quarter stronger than the fourth quarter. Suryadevara said, in that case, GM will generate a cash flow of $7-9 billion during the second half of the year. GM should be able to repay its $ 16 billion credit by the end of this year, depending on the economic recovery of the market and sales of the new 14 million units.
The company has reported a net loss of $ 758 million or 56% per share this quarter, down from $ 1.66 per share to a profit of $2.4 billion, the previous year. The analyst was expecting a loss of $ 1.77 per share, excluding one-time item but, the company has a loss of 50 cents per share.
General Motors to Repay Loan of $ 16 Bn if US Recovery Continues
