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GM mulls asset sales to raise quick money
General Motors Corp said on Friday it would sell and lease back some of its non-manufacturing operations in Eur-ope as part of its efforts to raise cash quickly.
- AP
- Published: 20:40 November 29, 2008
Detroit: General Motors Corp said on Friday it would sell and lease back some of its non-manufacturing operations in Eur-ope as part of its efforts to raise cash quickly.
The company's European division has retained real estate agent Jones Lang LaSalle to help identify potential buyers.
The company has the potential to raise about $257 million (Dh943 million).
"Investigations are under way as to what would be viable," said Denis Chick, spokesman for GM's United Kingdom and Ireland division in an e-mail on Friday.
According to Chick, properties in the UK that could be sold include its headquarters in Luton, a parts warehouse in Luton and an engineering site in Millbrook. GM has also delayed multiple projects, including new vehicles and engines, in order to cut costs. Earlier this month the company said it would sell its 3.02 per cent stake in Suzuki Motor Corp for $230 million.
The company is burning through cash more rapidly than it is making money, and may be at its minimum cash levels by the end of the year. GM is banking on swift congressional approval of taxpayer-backed bridge loans. Company executives are currently preparing a viability plan to present to Congress by Tuesday.
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