Archive for March, 2009
As a step to raise cash, General Motors is in a negotiation with two potential buyers of one of their assets, the Hummer.
The two potential buyers are said to be a known Chinese company and a private-equity firm. They wanted to keep their profile to themselves for now, because the negotiation is taking place, privately.
General Motors, who still hasn’t released their annual profit starting 2004, placed Hummer on sale last June since their sales sank down with the increasing oil prices. The car company’s financial crisis worsened due to the global economic situation presently. This triggered also General Motors to seek federal loans from the US Treasury. They gave out their viability plan to the Treasury Department in order to keep their $9.4 billion US loans and to secure themselves another $4 billion.
According to a source, General Motors is aiming to accumulate $500 million from Hummer.