Last year, GM crashed badly and had to declare that it was out of cash. The U.S. and Canadian government had come together to rescue this automobile giant from this grave situation. It was announced lately that GM has paid off the loan with interest before the time period. This week it returned total of $6.8 billion amount as loan to the Treasury department. General Motors and Chrysler had received the money as part of the TARP program.

With this recovery, GM is about to start mass production of Chevy Volt, the plug in hybrid. The manufacture will take place at Hamtramck plant near Detroit. According to CNN GM will invest nearly $250 million in Kansas and Michigan for production of next generation Malibu.

“People are giving U.S. cars a chance again,” said John Wolkonowicz, an analyst with IHS Global Insight in Boston. “The market is coming back, still pretty slow but stronger than it was last year. (GM) is planning ahead, adding capacity. Ford made it through without a bailout. Now it’s the company everybody is rooting for.”

So, is it safe to invest in the company after such a downfall of such trusted brand? Car manufacturing industry is one of the largest employers in the US and last year thousands of people were laid off. Now, GM has not only paid off its debt but is slowly turning to be profitable company.

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