GM plans to pay back Gov loans $1B per quarter

[Bruce Nunnally]

General Motors Co. plans to begin paying back a $6.7 billion loan it owes the U.S. government starting late this year, putting it on track to potentially repay the entire note by the middle of 2011, said a person familiar with the matter.

But in a move that could be controversial and risky, the car maker plans to use other money it received from the government to pay back the borrowing.

GM's move, in which it would repay $1 billion per quarter to the U.S. Treasury, is likely to be outlined Monday when the company releases its long-awaited third-quarter financial results. The company outperformed its financial objectives during its 40-day stay in bankruptcy and in the months since it emerged from Chapter 11 protection in July, this person said.

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