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.