In this economic climate, everyone is looking to generate cash and reduce overhead. And General Motors is certainly no exception, the automotive giant already having announced its intention to sell off its HUMMER brand. The General is also looking to offload its facility in Strasbourg, France. But the biggest sale yet could be the potential divestment from ACDelco, one of GM's parts subsidiaries.
ACDelco has been in operation for over 100 years, and offers no fewer than 37 product lines encompassing some 100,000 different parts on offer, both for GM vehicles and those made by rival automakers. The sale of ACDelco is part of a campaign to raise several billion in liquid assets for GM, and in as bold a sign of the times as any, the corporation has selected Merrill Lynch to manage the sale process. Full details in the press release after the jump.
[Source: General Motors]
PRESS RELEASE
General Motors Explores Potential Sale of ACDelco
General Motors (NYSE:GM) announced today that it is exploring a potential sale of ACDelco, its global independent aftermarket parts business, a brand of GM Service & Parts Operations. A sale is expected to promote more rapid growth of ACDelco globally.
As the company announced in July, GM is undertaking a number of initiatives to bolster its liquidity position by approximately $15 billion through year-end 2009, including the sale of assets which are expected to generate approximately $2-4 billion of liquidity. In addition to the ACDelco business, GM previously announced it is exploring the potential sale of its Hummer brand and its technical and manufacturing center in Strasbourg, France.
ACDelco provides light-duty maintenance and repair parts and associated services for both GM and non-GM vehicles in more than 100 countries. Part of GM Service & Parts Operations, ACDelco is headquartered in Grand Blanc, MI, with approximately 600 employees worldwide.
GM has retained Merrill Lynch to assist in this initiative.
About ACDelco
With over 100 years of experience in the automotive aftermarket industry, ACDelco is a global leader in automotive replacement parts and related services. Products include maintenance parts commonly replaced during the lifetime of a vehicle (e.g., batteries, oil filters, air filters, wiper blades, shocks and brakes), as well as repair parts (e.g., alternators, radiators, chassis and heating/cooling components).
ACDelco is among the world's best known comprehensive All Makes, All Models providers, featuring high quality auto parts for both GM and non-GM vehicles and services, with the brand's "genuine OE" reputation signifying high quality replacement parts, support and training in the automotive aftermarket. In the United States, ACDelco offers 37 full product lines with over 100,000 part numbers, comprised of both GM original equipment and All Makes, All Models product.
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