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GM could receive a second billion dollar gift

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D as 'Wall Street Journal' calculated on Wednesday (November 3rd) that GM saves 45.4 billion dollars in the best case - that would mean that the company would not have to pay any taxes for years. GM can offset losses or costs from the past with future profits.

GM could benefit from special regulations

GM had lost massive amounts of money over the years, which ultimately led to bankruptcy. Thanks to state aid, GM was reborn as a new company - which would actually delete the so-called loss carryforwards. But according to the newspaper, GM is benefiting from a special regulation issued by the government for companies that were absorbed by the state during the crisis.

The automaker is making billions again - freed from the burdens of the past - and is aiming for the middle of the month back on the stock exchange. The US government currently holds almost 61 percent of the company in return for the billions in aid. Other shares are held by Canada, the auto workers union and the creditors.

GM had split thousands of employees in one fell swoop, sold dozens of unprofitable plants, shook off debts, and cut pension and health care costs of its employees. That pays off today. At the same time, car sales rose again.


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