GM chief: "Significant interest" in assets for sale

Source: Exec Digital USA

Date :8/13/2008 4:24:05 AM

GM chief Rick Wagoner has told reporters that there is significant interest in the automaker's planned sale of up to US$4 billion of assets.

The head of General Motors Corp, which is battling record losses and falling sales, has today, August 13, revealed there is “significant interest” in assets for sale, but no deals are expected soon.

The firm is struggling against an accelerating downturn in its home market and high oil prices that have hammered sales of its trucks and SUVs, triggering a US$15.5 billion quarterly loss, the third-largest in its 100-year history.

GM is on track to free up US$15 billion in liquidity with cost-cutting, asset sales and new borrowing under a July plan intended to reassure investors it can ride out the downturn.

"Frankly, we are getting some significant interest in our asset sales, including Hummer, but probably it won't be concluded imminently," GM chairman Wagoner said.

GM shares have more than halved this year, compared with a fall of around 12 percent in the Standard & Poor's 500 index.