GM Plans to Sell Hummer

Walter Borst, GM's CFO said at the end of September, GM plans to sell the Hummer brand and transmission plant in Strasbourg, France. Walter Borst said the value of assets which GM is considering sell is between 2.0 billion and 40 billion dollars.

Prior to that, there were reports that GE tend to be sell the assets to China, India or Russia's business, but there is not any enterprise respond to it.

When attending the Leveraged Finance Conference in Germany, Walter Borst said The sale of assets will not affect GM's strategic planning. In his speech, the slide Walter Borst used was placed on the GM investment web site. GM is expected to distribute promotional materials about selling Hummer brand and France's transmission plant in October. At present, the employees of transmission plant are about 1,300.

As a result has been losing money, while the U.S. auto sales are still in down stage, General Motors and the other United States auto manufacturers have encountered a shortage of liquidity funds. In August, GE announced a plan that raising funds by three ways. They are a reduction of 100 billion U.S. dollars of expenditures; 50 billion U.S. dollars obtained through the sale of assets; and the loan continued until the end of next year. In the fourth quarter of this year, there may be more assets be sold.

Originally Posted: China Business Daily
Author: Angulo Fu