GM to Repay Taxpayer Money Starting Next Month

General Motors Co. will repay $6.7 billion of the $49.9 billion in aid it received from the U.S. government starting next month, more than five years sooner than required, a person familiar with the company’s plans said.

GM, the largest U.S. automaker, plans to make a payment of $1 billion a quarter, with the first installment Dec. 31, said the person, who requested not to be identified because the transaction hasn’t been announced publicly. The Treasury Department is unlikely to recover all of the aid it provided, a congressional oversight panel said in a report Sept. 9.

Detroit-based GM is working to overhaul its operations and return to a profit after filing for bankruptcy protection June 1 in the wake of $88 billion in losses since 2004. The company is able to start repaying aid because it has a stronger financial position than anticipated, according to the person.

GM isn’t obligated to make a payment until July 20, 2015, the person said. At $1 billion a quarter, the $6.7 billion would be repaid by the second quarter of 2011. Bloomberg