GM Continues Its Restructuring Long March With Plans To Sell Vauxhall.
By: Ainsley Brown
General Motors (GM) this week in another move in its restructuring plan has taken further steps to divest itself of its European operations. First it was Swedish Saab now it’s the UK’s Vauxhall.
According to the report in the Times GM is prepared to sell Vauxhall at a discount price – you could even say at a fire sale price – to one of the six potential buys it is believed to be in talks with. These potential buyers include rival car maker Shanghai Automotive and private equity groups.
GM is hoping to be able to short list the bidders by early next month and complete the sale shortly thereafter. This would leave it free to concentrate on its core business and market in the United States. If one cannot be completed by June – Vauxhall has enough money to keep operations going until then – Vauxhall faces the possibility of going in to bankruptcy.
However, even with a sale instead of bankruptcy, some or all of the over 5,000 jobs at the company are at risk as any buyer will look to cut costs upon acquisition.
