The US Treasury Department said Thursday there would be no initial public offering of government-rescued automaker General Motors before October.

"Exact timing of the offering will be determined by GM in light of market conditions and other factors, but will not occur before the fourth quarter of this year," the Treasury said in a statement.

"Treasury will retain the right, at all times, to decide whether and at what level to participate in the offering, should it occur."

The Treasury provided about 50 billion dollars in financing to GM and owns 60.8 percent of the common stock after the leading US automaker emerged from a government-supported bankruptcy reorganization a year ago.

The initial public offering will be "a significant step" in carrying out Treasury's previously announced intention of disposing of its investments under the 700-billion-dollar Troubled Asset Relief Program, the department said.

The Treasury said the IPO was expected to include the sale of shares owned by Treasury, GM and other shareholders.

Canada, which extended 9.1 billion dollars in loans as part of the bailout, has an 11.7 percent stake in GM and a United Auto Workers union retiree healthcare trust fund holds 17.5 percent.

Last month, GM reported a post-bankruptcy quarterly profit for the first time in three years on the back of a jump in sales and cost-cutting measures.

GM entered a government-backed bankruptcy reorganization on June 1, 2009, with liabilities of 172.8 billion dollars.

The company emerged from bankruptcy protection on July 10 with 48.4 billion dollars in debt.

Auto giant General Motors has recalled more than 1.3 million vehicles in the United States over fears that an electrical fault could cause them to catch fire, US government documents showed Tuesday.

The problem, linked to the vehicles' windshield wiper fluid system, affects at least 18 models ranging from Chevrolet trucks to Hummers, documents from the National Highway Traffic Safety Administration showed.

GM's Buick, Cadillac, and GMC brands are also affected, particularly high-end SUVs and pick-up trucks.

In a letter to customers and US watchdogs, GM -- which received a massive government bailout to stay afloat -- said many of the models had already been involved in a 2008 recall linked to possible electrical shorting.

"However, there have been new reports of thermal incidents," GM said.

The Detroit, Michigan based firm said the new incidents resulted from a flaw in fluid systems' heat insulation.

The incidents ranged from "minor distortion to considerable melting of the plastic around the... fluid chamber."

"In rare circumstances, it is possible for the heated (windshield) washer module to ignite."

At least four fires are thought to have occurred.

GM first notified the US government of potential problems in September 2009, but could affect models dating back to 2006.

In a letter to customers, GM said it would fix the problem "at no charge" and give a "satisfaction payment" of 100 dollars from dealers, spelling a potential payout of more than 136 million dollars for the firm.

The recall is a body-blow to the firm, which is fighting to escape from the shadow of a high-profile bankruptcy.

GM entered a government-backed reorganization on June 1, 2009, with liabilities of 172.8 billion dollars.

The company emerged from bankruptcy on July 10 with 48.4 billion dollars in debt.

In May, the firm saw a quarterly profit for the first time in three years on the back of a jump in sales and cost-cutting measures.

The carmaker said that sales of four brands it retained following restructuring -- Chevrolet, Buick, GMC and Cadillac -- rose 31.8 percent from May last year.

General Motors said Wednesday its US sales rose 16.6 percent in May from a year earlier, the eighth consecutive month of gains for the top US automaker.

GM said 223,822 cars and trucks were sold in May, outpacing April sales of 183,091 vehicles.

The carmaker, which was rescued from bankruptcy by the federal government last year, said that sales of four brands it retained following restructuring -- Chevrolet, Buick, GMC and Cadillac -- rose 31.8 percent from May last year.

Steve Carlisle, vice president of GM's US sales operations, said that GM's brands have outperformed the US auto market thanks to the company's newest products.

"Each of our brands has new products that are being received well by customers. In fact, these new vehicles now account for about one in every four retail sales in the US," he said.

Last month, GM reported a post-bankruptcy quarterly profit for the first time in three years on the back of a jump in sales and cost-cutting measures.

GM entered a government-backed bankruptcy reorganization on June 1, 2009, with liabilities of 172.8 billion dollars.

The company emerged from bankruptcy protection on July 10 with 48.4 billion dollars in debt.

The US government -- which has provided some 50 billion dollars in financing -- received a 60.8 percent stake in the new firm called General Motors Company.

Canada, which extended 9.1 billion dollars in loans, has an 11.7 percent stake and a United Auto Workers union retiree healthcare trust fund holds 17.5 percent

US auto giant General Motors reported Monday a post-bankruptcy quarterly profit for the first time in three years of nearly 900 million dollars.

The net income during the January-March period came on the back of sales and revenue of 31.5 billion dollars, up from 22.4 billion dollars in the corresponding period in 2009.

"We're pleased with our first-quarter performance, in particular achieving profitability," said Chris Liddell, GM vice chairman and chief financial officer.

"In North America we are adding production to keep up with strong demand for new products in our four brands."

In its first-quarter earnings report, GM said net income attributable to stockholders reached 865 million dollars from a massive loss of 5.98 billion dollars during the same period in 2009.

GM, which received 50 billion dollars of government financing for its bankruptcy restructuring, said last month it was able to pay off 8.4 billion dollars in government loans ahead of schedule.

It had reported a post-bankruptcy 2009 loss of 4.3 billion dollars.

General Motors Co. workers from two Lansing plants are helping school children understand what they can do to help keep local groundwater safe and clean as part of the 15th annual Children’s Water Festival today at Michigan State University.

More than 2,000 fourth, fifth and sixth graders from school districts in Michigan’s Ingham, Eaton and Clinton counties, are participating in the event .

The GM team members from Lansing Grand River and Lansing Delta Township factories will provide hands-on lessons showing students how over fertilizing their law or dumping soapy water from car washing into storm sewers can hurt the ecosystems that exist in local streams and lakes.

“We have made a mock map of an area of a city with a watershed out of a shower curtain and we’re going to have the kids spread different substances on the curtain and let them see how they ‘flow’ into the watershed,” said Jim Ecklund, senior environmental engineer at Lansing Grand River, where the Cadillac CTS and CTS-V are assembled..

In one exercise, students will spread salt onto the roads outlined on the map—mimicking what some cities use to clear roads in the winter. Students will then spray water on the curtain to mimic rain and see how the salt flows into the mock stream and lake at the center of the curtain.

Similar exercises will be done to show the impacts of dumping oil on streets and over-fertilizing vegetation.

“The goal here is to show the kids that it only takes simple steps to make a difference, like dumping the soapy water left over from car washing into their home sink, where the water is treated in a treatment plant, as opposed to into the storm sewer, which flows directly into the local creek,” Ecklund said.

The Lansing activities are a small part of the contribution GM employees around the world make to improving their local environment. In the U.S., GM has joined forces with Earth Force, a non-profit organization dedicated to creating a generation of young people who are environmental citizens, to form GM GREEN. The GREEN program brings together GM team members, students and teachers across the country to build rain gardens to filter storm water, organize river clean-ups and lead outreach campaigns to educate their communities about local water quality issues. The goal, like that of the Children’s Water Festival, is to empower young people to be environmental change agents in their communities.

“Young people are the decision makers of tomorrow. So why not help them build those skills today?” asked Teri Kline, GM senior environmental engineer and coordinator of the GM GREEN program. “The GREEN program and those like it work to engage the entire community in fostering environmental citizenship in our young people.”

More than 100,000 students have been educated through GM GREEN and programs like it throughout more than 32 communities in the past 20 years

Abundant hydrogen is available on the island of Oahu to power a ramp up of fuel cell vehicles through a General Motors collaboration with The Gas Company (TGC), Hawaii’s major gas energy provider, the two companies announced Tuesday.

TGC produces hydrogen along with synthetic natural gas and delivers it in its utility gas stream, with more than 5 percent hydrogen content today. Through a proprietary separation process, TGC plans to tap into its 1,000-mile utility pipeline system at key locations and separate the hydrogen for use by local fueling stations for fuel cell vehicles.

“This is the type of enabler that a hydrogen transportation infrastructure needs because it addresses both the source of the hydrogen and a feasible way to deliver it for fuel cell vehicle use,” said Charles Freese, executive director of GM Global Fuel Cell Activities. “The Hawaii infrastructure could eventually support tens of thousands of fuel cell vehicles.

“Hawaii is uniquely positioned and motivated to make hydrogen-powered fuel cell transportation a reality because it depends on imported petroleum for 90 percent of its energy,” he said.

The state is committed to reducing petroleum use by 70 percent through a combination of renewable energy resources, conservation and efficiency. The use of hydrogen as a transportation fuel could be a key contributor.

“We have been delivering as much as 12 percent hydrogen made from renewable sources to our gas customers over the last two to three years and expect we can deliver even greater quantities of hydrogen as demand increases,” said Jeffrey Kissel, president and CEO of TGC. “By delivering hydrogen through our existing infrastructure as vehicle fuel wherever we have gas, The Gas Company expands its key role of supporting Hawaii’s clean energy future.”

Depending how the pricing for the hydrogen is set, it could be available at the equivalent price of gasoline or less.

GM, which has invested more than $1.5 billion in fuel cell transportation in the last 15 years, is developing a production-intent fuel cell system that could be ready for commercialization in 2015. Current Chevrolet Fuel Cell vehicles are part of Project Driveway, the world’s largest demonstration of fuel cell vehicles, which has amassed nearly 1.4 million miles of real-world driving by thousands of people since 2007.

U.S. Senator Dan Inouye, D-Hawaii, said he supports the pilot project.

“My small role was one of introduction between these two companies, not that many months ago, which resulted in this business announcement today,” Inouye said. “It is an important step forward in the establishment of a hydrogen transportation infrastructure upon which new fleets, both military and civilian, can be tested and utilized. I am committed to support the resourcing of this endeavor.

“Every step to reduce our dependency on foreign oil is a move forward,” he said.

The GM-TGC collaboration is the leading edge of a broad consortium of federal and state, non-profit and education organizations that is forming to develop a Hawaii Hydrogen Initiative as part of an integrated energy solution for Hawaii’s future.

General Motors will invest more than $890 million which will create or retain more than 1,600 jobs in five North American plants to produce a new generation of fuel efficient small block truck and car engines. The investment consists of the following:

Two plants will support the engine production:

• Tonawanda, N.Y. – an investment of $400 million resulting in more than 710 jobs
• St. Catharines, Ontario – an investment of $235 million resulting in approximately 400 jobs (click here for Canada release)
• Three plants will support engine casting and component production:
• Defiance, Ohio – an investment of $115 million resulting in up to 189 jobs
• Bedford, Ind. – an investment of $111 million resulting in about 245 jobs
• Bay City, Mich. – an investment of $32 million resulting in over 80 jobs

The investments include facility renovation and installation of new, highly flexible engine machining and assembly equipment and special tooling designed for manufacturing efficiency and engine quality. At the casting facilities, investments include expansion of semi-permanent mold and precision sand casting technologies that result in a high degree of dimensional accuracy and material strength properties needed to support the newer, more efficient engines in GM’s product portfolio.

“GM is investing in our plants, restoring and creating jobs and making progress toward our vision of designing, building and selling the world’s best vehicles,” said Mark Reuss, president of GM North America. “These latest investments show our commitment to improving fuel economy for buyers of every GM car, truck and crossover and giving them the best possible driving and ownership experience.”

The next generation small block engine family will have unprecedented fuel efficiency through direct injection and an all-new advanced combustion system design. The new engine family will rely exclusively on aluminum engine blocks, which are lighter and contribute to the improved fuel efficiency. In addition to being E85 ethanol capable, these engines are being designed with the capability to meet increasingly stringent criteria emissions standards expected throughout this decade.

Specifics about the engine capabilities as well as product applications will be shared at a later date.

Since the launch of the new GM last July, the company has announced investments of more than $2.3 billion at 22 facilities in the U.S. and Canada. These investments restored or created more than 9,100 jobs, and they demonstrate a strong commitment to GM’s future and to the United States and Canada.

NEW YORK: General Motors said it had fully repaid billions of dollars in government loans five years early, prompting its CEO to proclaim the once-crippled automaking giant was making "great progress."

The White House seized on the fact that GM had reimbursed 8.4 billion dollars to the US and Canadian governments so far ahead of schedule as proof President Barack Obama's economic rescue plans were working.

Wednesday's announcement came a year after Obama faced the perilous political choice of either bailing out GM and Chrysler or letting them collapse with dire economic and social consequences.

"GM's ability to pay back our loans ahead of schedule is a sign that our plan is working and that we're on the right track," chief executive officer Ed Whitacre said to cheers from workers at a GM Assembly plant in Kansas.

The new, post-bankruptcy GM made a final 5.8 billion dollar loan payment to the US and Canadian governments Tuesday.

The payments however do not include much higher loans made to the company under its former guise, being slowly wound down through the bankruptcy process.

The US government, which provided about 50 billion dollars in emergency loans, holds a 60.8 percent stake in the new company and 2.1 billion dollars in preferred stock. The Canadian government and a retiree health care trust also hold significant stakes.

The White House, accused by Republicans of a massive takeover of the economy when it decided to prop up GM, greeted the news as proof Obama's policies were helping haul the US economy out of crisis.

"What a difference a year makes. Just about a year ago, the American auto industry was on the brink of collapse," said Lawrence Summers, director of Obama's National Economic Council in a White House blog post.

A Council report said Obama had made a "difficult and unpopular choice to support our economy, the American auto industry and American jobs."

Treasury Secretary Timothy Geithner hailed the loan repayments as a "positive sign" and said "countless jobs" had been saved.

In Ottawa, Canadian Prime Minister Stephen Harper also said his government had also made the right decisions.

"Not only has GM repaid their loan in full, ahead of schedule, but new shifts have also been created at Canadian auto plants."

GM has vowed to launch a public stock offering as soon as is practical, perhaps as early as the second half of this year, but it will likely take years for the US government to wind down its massive stake.

"We are able to repay the taxpayers ahead of schedule because we are designing, building and selling the best cars and trucks GM has ever produced," Whitacre said.

"Yes, we still have a lot of hard work ahead of us even with the repayment of the loan," Whitacre acknowledged, adding that "we're making a lot of progress -- great progress."

General Motors reported a post-bankruptcy 2009 net loss of 4.3 billion dollars on April 7, but said it was encouraged by the results and hoped to achieve profitability in 2010. It is expected to report first quarter results next month.

Since emerging from bankruptcy in July, the new GM has increased worldwide sales and "developed a healthy, clean balance sheet" and competitive cost structure, Whitacre said.

That success has allowed GM to invest 1.5 billion dollars in 20 US and Canadian plants which either restored or created 7,500 jobs.

However its overall employment levels remain radically cut to 217,000 at the end of 2009 from 335,000 in 2005.

GM has slashed about 4,000 dollars in costs from each vehicle it produces since it declared bankruptcy last year, said Sean McAlinden, chief economist at the Center for Automotive Research in Ann Arbor, Michigan.

"There's some question as to whether GM can get Buick and GMC to increase their sales enough to survive, or whether the (plug-in hybrid Chevy) Volt will ever sell at volume to make any kind of money at all," McAlinden told AFP.

John Wolkonowicz, an analyst with IHS Global Insight, said GM is solidly on the path to long-term profitability.

"There's no doubt about GM - GM is going to be a successful company," he said in a telephone interview.

"Before the bankruptcy they had great products, great product development, good quality, but they had a lot of legacy issues that were like a millstone around their neck and the bankruptcy process was able to get rid of some of that."

General Motors Company Chairman and CEO Ed Whitacre today announced that GM has made its final payment of $5.8 billion to the U.S. Treasury and Export Development Canada, paying back its government loans in full, ahead of schedule.

The announcement came at a ceremony here to highlight an investment of $257 million at GM’s Fairfax, Kansas, and Detroit Hamtramck assembly centers. The investment will prepare Fairfax to build the next generation of Chevrolet’s award-winning Malibu, and make Detroit Hamtramck a second source for Malibu, ensuring that Chevrolet can meet market demand for this popular mid-size sedan.

“GM is able to repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse we build here in Fairfax,” said Whitacre. “We are now building some of the best cars, trucks, and crossovers we have ever built, and customers are taking note. Our dealers are increasing their sales, we are investing in our plants, and we are restoring and creating jobs.”

The U.S., Canadian, and Ontario governments, as part of the launch of the new GM, provided loans of $8.4 billion and took equity stakes in the new company. Today’s payment of $5.8 billion ($4.7 billion to the U.S. Treasury and $C1.1 billion to Export Development Canada) completes the payback of these loans.

“GM’s ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track. It is also an important first step toward allowing our stockholders to reduce their equity investments in GM,” said Whitacre. “We still have much hard work ahead of us, but we are making progress toward our vision of designing, building, and selling the world’s best vehicles.

“We appreciate the support the taxpayers have given GM, and our great new products are tangible results of that support.”

Strong sales support manufacturing, jobs

Strong sales of new Chevrolet, Buick, GMC, and Cadillac products are fueling a steady increase in production as GM works to meet growing customer demand.

Sales for GM’s four brands are up 36 percent through March versus the same period in 2009, and many newly introduced cars and crossovers – including Chevy Equinox, Camaro and Traverse; GMC Terrain and Acadia; Buick LaCrosse; and Cadillac SRX – remain in short supply at GM dealers.

The Fairfax plant currently builds two of GM’s strongest selling cars, the Chevy Malibu and Buick LaCrosse. For the first three months of this year, GM’s U.S. dealers delivered more than 49,000 Malibus and 14,000 LaCrosses, representing a 58 percent increase over the same period last year. In response to this strong demand, Fairfax in February added a third shift of approximately 1,050 jobs, bringing total employment at the plant to more than 3,800.

Fairfax will become the primary source for the next generation of the Malibu. Detroit Hamtramck, which builds the Buick Lucerne and Cadillac DTS, will be equipped to build the Malibu as well, ensuring that Chevrolet can meet market demand.

Detroit Hamtramck will also build the Chevy Volt electric vehicle with extended range, which launches this year. On March 31, the plant celebrated a major milestone, the building of the first pre-production Volt on the regular assembly line.

The Malibu-related investments of $136 million in Fairfax and $121 million in Detroit Hamtramck will include facilities, machinery and equipment, and tools.

Since the launch of the new GM last July, the company has announced investments of more than $1.5 billion at 20 facilities in the U.S. and Canada. These investments restored or created more than 7,500 jobs, and they demonstrate a strong commitment to GM’s future and to the United States and Canada.

NASA will launch the first human-like robot to space later this year to become a permanent resident of the International Space Station. Robonaut 2, or R2, was developed jointly by NASA and General Motors under a cooperative agreement to develop a robotic assistant that can work alongside humans, whether they be astronauts in space or workers at GM manufacturing plants on Earth.

The 300-pound R2 consists of a head and a torso with two arms and two hands and will launch on space shuttle Discovery as part of the STS-133 mission planned for September. Once aboard the station, engineers will monitor how the robot operates in weightlessness. R2 joins another station robot, known as Dextre. That robot, built by the Canadian Space Agency, consists of two, long arms to perform tasks that normally require spacewalking astronauts to complete.

While Dextre is located on the station's exterior, R2 will be confined to operations in the station's Destiny laboratory. However, future enhancements could allow it to move more freely around the station's interior, and it could one day be modified to operate outside the complex.

“The use of R2 on the space station is just the beginning of a quickening pace between human and robotic exploration of space,” said John Olson, director of NASA's Exploration Systems Integration Office. “The partnership of humans and robots will be critical to opening up the solar system and will allow us to go farther and achieve more than we can probably even imagine today.”

The dexterous humanoid robot not only looks like a human, it is designed to work like one. With human-like hands and arms, R2 is able to use the same tools that station crew members use. In the future, the greatest benefit of humanoid robots in space may be as an assistant or stand-in for astronauts during spacewalks or for tasks too difficult or dangerous for humans. For now, R2 is still a prototype and lacks adequate protection needed to exist outside the space station in the extreme temperatures of space.

Testing the robot inside the station will provide an important intermediate environment. R2 will be tested in zero gravity, as well as being subjected to the station’s radiation and electromagnetic interference environments. The interior operations will provide performance data on how a robot may work side-by-side with astronauts. As development activities progress on the ground, station crews may be provided hardware and software to update R2 to allow it to do new tasks.

R2 is undergoing extensive testing in preparation for its flight. Vibration, vacuum and radiation testing along with other procedures being conducted on R2 also benefit the team at GM. The automaker plans to use technologies from R2 in future advanced vehicle safety systems and manufacturing plant applications.

“The extreme levels of testing R2 has undergone as it prepares to venture to the International Space Station are on par with the validation our vehicles and components go through on the path to production,” said Alan Taub, vice president of GM’s global research and development. “The work done by GM and NASA engineers also will help us validate manufacturing technologies that will improve the health and safety of our GM team members at our manufacturing plants throughout the world.”

“Partnerships between organizations such as GM and NASA help ensure space exploration, road travel and manufacturing can become even safer in the future,” Taub said.

GM’s manufacturing engineering team is already working to identify potential applications for R2’s array of vision, motion and sensor technologies that will assist workers in manufacturing operations.

"Our strategy is to develop technologies that can fundamentally change the way we manufacture cars and trucks", said Kenneth D. Knight, executive director GM Manufacturing Assembly & Automation Center. "This includes a focus on developing ways to further support our operators.”