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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They should rent out test tracks to raise money. I’d pay to get on Milford for a few hours of hoonery.
From basic finance and economics – I always thought it was best to sell these unneeded assets in a sellers market rather than a buyers (recession)? Am I wrong? You’d think they’d get at the very least twice as much money during an economic boom. How this is “blockbuster” I will never know – except someone who’s self interest is directly tied to what they are reporting and embellished quite a bit.
I’d also like to get on one of the test tracks for some track time. Though I don’t think they’d like me bringing my two racecars – old ITC Honda Civic or 8v Porsche 944. I would tow on there in a Silverado (when it’s not at the dealer for some sensor in the transmission making it shift hard causing me to leave 2 hours late on a long tow or the blower motor making a nice whining sound – just started right after warranty expired this summer).
Rent out the tracks? Word is they sold a couple.
Like the one in AZ?
Besides, most folks only like to “read’ about driving fast…
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.
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.
Oooooooh…bring in milions!
Boy, that will help.
Bunter
I wonder if GM could make some cash letting people on test tracks & selling/installing replacement parts after track days.