GM to speed up cost-cutting by selling French factory and Hummer

GM is planning to accelerate its $10 billion cost cutting plant by getting rid of its Strasbourg, France, manufacturing facility and dropping the Hummer brand. GM’s treasurer Walter Borst said in a presentation at Deutsche Bank Leveraged Finance Conference that GM will also announce more asset sales later this year.

Slides from the presentation posted on GM’s site on Wednesday state that the two assets currently under review are worth $2 billion to $4 billion. They said that GM will gather up marketing material for the France factory and Hummer brand by the end of October.

“We believe that we can monetize certain assets without impacting the strategic direction of the company,” Borst said.

GM plans on raising another $5 billion with more asset sales and borrowing by the end of next year.

Source: MSNBC