Automaker selling parts subsidiary to raise cash
23 October 2008

General Motors has announced plans to sell its parts subsidiary, ACDelco, as it attempts to improve its financial state.

ACDelco is one of America’s original parts suppliers, having pioneered the mass-produced spark-ignition system and also the electric starter motor. It currently makes over 100,000 different parts, for both GM and other manufacturers.

GM needs to raise $15bn by the end of the year to stay solvent. Collapsing US sales mean the company needs to fill an estimated shortfall of $21bn, by the end of 2009. A potential merger with (or takeover of) Chrysler will also require funding.

GM is raising funds by both cutting spending and selling-off assets. It has already sold 51 per cent of its finance arm to Cerberus, the company that owns Chrysler, and has invited expressions of interest from companies interested in buying the Hummer brand.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • First Drive
    21 March 2018
    The new Vantage has been developed as a Porsche 911 beater, and our first taste on UK roads suggests it can live up to that bold claim
  • Nissan Leaf Tekna
    The is the new Nissan Leaf
    First Drive
    21 March 2018
    The new version of the world's best-selling electric car gains a bigger battery and more power. How does it compare to rivals such as the Volkswagen e-Golf?
  • Range Rover p400e
    First Drive
    20 March 2018
    The original luxury SUV is now available as a plug-in hybrid, promising lower emissions and the capacity for silent electric motoring
  • BMW i3s
    Car review
    20 March 2018
    Revised hatchback sets out its range-extended electric stall in a new, sportier tune
  • BMW X2
    This is the new BMW X2
    First Drive
    20 March 2018
    Doesn’t deliver many typical crossover selling points but looks perky, handles keenly and is well capable of winning over your latent cynic