B2B Portal for Technical and Commercial Foundry Management

Foundry Daily News

28. September 2008

USA - GM to sell Hummer line, French automotive plant

DETROIT – General Motors Corp.’s treasurer said Wednesday that the automaker is planning to put its Strasbourg, France, manufacturing operation and its Hummer truck brand up for sale, and it may announce more asset sales later this year.

Company Treasurer Walter Borst said in a slide presentation at the Deutsche Bank Leveraged Finance Conference that the company expects to distribute marketing materials for both operations in October.

The slides, posted on GM’s Web site Wednesday, say the assets under review are worth $2 billion to $4 billion. The presentation also says GM continues to review other asset sales and will make more announcements in the fourth quarter.

GM, which has an Allen County truck plant and a foundry in Defiance, Ohio, and other automakers have faced liquidity problems. GM announced a plan in July to cut $10 billion in costs and raise an additional $5 billion through asset sales and borrowing.

On Friday, the nation’s largest automaker gave notice that it would draw the remaining $3.5 billion of a $4.5 billion revolving credit facility to boost its liquidity.

Related Articles

Youtube Google+ Linkedin Xing