Detroit – General Motors Co posted a third-quarter operating loss yesterday but said stabilising sales and lower costs since its July bankruptcy would allow it to begin repaying $6,7-billion (R49,4-billion) in US government debt ahead of schedule.

The car maker said it would begin making $1-billion (R7,3-billion) quarterly instalment payments on its US government loan next month. At the same time, the vehicle manufacturer would start repaying a $1,4-billion (R10,3-billion) loan from Canada, making a payment of almost $200-million (R1,4-billion). GM had not been required to make any payments on the US loan before it matured in July 2015.

For the third quarter, GM posted a loss of $888-million (R6,5-billion). GM, which slashed almost 70% of its debt in a bankruptcy funded and directed by the US government, posted third-quarter sales of $28-billion (R206-billion) in preliminary financial results released yesterday.

The sales results were down 26% from a year earlier but up 21% from the second quarter.

The US government extended almost $50-billion (R368,8-billion) in financing to GM, most converted into a 61% equity stake. GM ended the third quarter with $42,6-billion (R313,9-billion) in cash and $17,4-billion (R128,2- billion) in a bankruptcy escrow account. It said it had allocated $8,1-billion (R59,6-billion) from the escrow account to repay the government debt. – Reuters