GM Fire Sale Gathers Pace: Everything Must Go!

Robert Farago
by Robert Farago
gm fire sale gathers pace everything must go

The Detroit News reports that previous reports reporting GM’s attempts to sell its Strasbourg factory– oh, and the HUMMER brand– missed a wider campaign by The General to throw the rest of the furniture at the cash conflagration burning down the house. “The Detroit automaker has sold hundreds of acres of land in recent months — including a plant where World War II fighter planes were built — and has several blockbuster deals in the works to sell shuttered facilities and land nationwide to net millions for the company. That’s money GM desperately needs to fund vehicle development and manufacturing, pay bills, and weather a credit crunch that has prevented some buyers from financing new cars, analysts said.” Hey! That’s us! But hang on; how can any real estate deal forged in the current market possibly be considered “blockbuster?” Anyway, the DetN has the full catalog, and, as you’d suspect, GM spinmeisters are whirling like dervishes. “When we can sell surplus property or get it off our books, there are certain benefits from a business standpoint,” GM spokesman Dan Flores told his hometown paper. “It allows us to reduce our operating costs. But our real estate strategy does not drive the business. The company’s focus is to generate cash. We’re not doing anything different than what we always do.” How scary is that?

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  • Samuel L. Bronkowitz Samuel L. Bronkowitz on Oct 01, 2008

    Picture looks like the GM Doraville plant outside Atlanta. I remember passing that as a kid and feeling a sense of wonder at what a mighty industrial juggernaut GM was. Later I got to tour the place thanks to a friend's mom that worked there. Now? not so much... kinda sad, particularly for the lost jobs.

  • Redbarchetta Redbarchetta on Oct 01, 2008

    Speaking of "Everything Must Go" does anyone know if the Employee pricing or some other super incentive scheme is being annouced for Oct. Yesterday was the last day of Employee pricing and the dealer I talked to on Monday while looking at a G8 said it wasn't going to be happening for another 5 years. BS since 2005 wasn't 5 years ago like he kept telling me the last time they did it. Did really love that G8 GT, fast and fun. Didn't even mind the auto that much, hauled like a freight train when you punched it.

  • Bunter1 Bunter1 on Oct 01, 2008

    Oooooooh...bring in milions! Boy, that will help. Bunter

  • R H R H on Oct 01, 2008

    I wonder if GM could make some cash letting people on test tracks & selling/installing replacement parts after track days.