(Thumbnail image: NBC24 Toledo)

“When you talk with Fritz Henderson and other executives at General Motors, they admit it doesn’t look good when you lose $1.2 billion the first quarter that you’re out of bankruptcy, but they are also pointing out to the fact they have positive cash flow and a few other factors as indications this company is moving to get back into the black.” (CNBC)

American automaker General Motors announced this week that next month they will begin to payback $1.2 billion they owe to the United States and Canadian governments.  Some analysts left the company for dead after it filed for bankruptcy protection, but this surprising news could show the automaker is on the road the recovery.  

We’re looking at perspectives from CNN, auto blog The Car Connection, Hot Air and the Business News Network.

CNN looks at how the company is able to begin to payback its debt, saying it amounts to nothing more than returning government borrowed funds.

“The money for the first payment will come from funds the government gave GM to fund its operations through the bankruptcy process. GM now plans to pay back the $6.7 billion in U.S. government loans over a period of two years.”

GM CEO Fritz Henderson said GM could have the debt paid off as early as June of next year, even though the money isn’t due until 2015.  The Carconnection.com says: 

“Repayment of the $6.7 billion debt won't have any effect on the federal government's role in General Motors operations -- something that GM desperately wants to eliminate. Although the feds have stated time and again that they don't want to be in the auto business, they have put some 'big picture' items and restrictions in place, like the cap on executives salaries.”  

While some media outlets are reporting the pay back as good financial news for GM, some say not so fast.  Hot Air, a blog started by conservative commentator Michelle Malkin, is critical of General Motors after the company said their accounting standards don’t necessarily comply with U.S. accounting standards, and figures shouldn’t be compared with previous earnings.  

“Let’s get this straight.  GM gets tens of billions of dollars in taxpayer money and gets an Obama-managed bankruptcy — and stops complying with accounting standards?  My goodness, they really are Government Motors!”  

GM did say their accounting standards should comply with government standards by next year. Auto analyst Rebecca Lindland tells the Business News Network that GM may be overstating its market-share when it looks towards future profits.  

"The concern then is that they do have a higher market-share number.  I think their market-share expectations are more in the 17, 18, 19 percent range, and we’re a little bit more conservative, somewhere around the 16 percent range." 

So what do you think?  Is Monday’s announcement proof that GM is on the right track to being publicly traded again?

Writer: Michael Bittner

Producer: Zach Wade