Unfortunately, according to Neil Barofsky, the Inspector-General for the Troubled Asset Relief Program (TARP) under which the federal loans were made to GM, the repayments cited by Whitacre were simply made with other tax dollars made available to the automaker in its bailout deal with the government.
So in effect GM was repaying one government loan with another government loan.
There is a name for the kind of regime that allows private ownership of businesses but effectively tells them what to produce and sell. It's called Facism. America is far from there, but becoming a bailout nation is a significant step in the wrong direction.