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GM exploring sale of aftermarket parts business

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GM exploring sale of aftermarket parts business
October 22, 2008 11:05 AM ET
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DETROIT (Reuters) - General Motors Corp is exploring the sale of ACDelco, its global aftermarket parts business, to raise cash, the No. 1 automaker said on Wednesday.

GM, which also has its Hummer all-SUV brand and a manufacturing center in Strasbourg, France, on the auction block, has retained Merrill Lynch to assist in the potential sale of ACDelco.

In July, the automaker laid out a plan to boost its liquidity by $15 billion by end of 2009. The plan included costs cutting and sales of assets that are expected to raise $2 billion to $4 billion.

ACDelco, which provides light-duty maintenance and repair parts for both GM and non-GM vehicles, is based in Grand Blanc, Michigan, and has about 600 employees worldwide.

GM is also in talks with Cerberus Capital Management, which owns Chrysler LLC, about combining the two automakers at a time when both are struggling to survive a deep downturn in sales and shore up cash.


General Motors Explores Potential Sale of ACDelco
2008-10-22
Link to Press Release


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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I'm resigned. This isn't good, but I'm not going to let the economy get me down. As long as the CTS coupe is available as a graduation present May 2010, I'll be happy.

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Every subsidiary that use to make money GM has either spun off or sold off so GM could get down to its core business, which was making vehicles. What a mistake that was. Just to name a few, EDS, GM Hughes, GMAC, Delphi, Allison Transmission, Detroit Diesel, Fridgidaire, the list goes on and on ... Well now that GM is into their core business, there is nothing to fall back on in the lean times. I said this was a mistake when they spun EDS off, now the chickens have come home to roost.

Edited by Pontiac Custom-S
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Does ACDelco make GM any money? If it does it would seem silly to sell one of the few bright spots at GM.

I don't know, but in years past Chrysler always made a profit from Mopar and had received numerous offers to buy it. I'm not sure that such offers haven't dried up in todays economy.

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Every subsidiary that use to make money GM has either spun off or sold off so GM could get down to its core business, which was making vehicles. What a mistake that was. Just to name a few, EDS, GM Hughes, GMAC, Delphi, Allison Transmission, Detroit Diesel, Fridgidaire, the list goes on and on ... Well now that GM is into their core business, there is nothing to fall back on in the lean times. I said this was a mistake when they spun EDS off, now the chickens have come home to roost.

+1 and then some...

I agree 100% GM should've never spun off all of their profitable subsidiaries.

It's just a part of the slow, planned suicide that a lot of people in this industry and country want GM to continue.

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