GM Exploring Sale of ACDelco
By Kevin Miller
General Motors this morning has announced it is exploring its options for the sale of its ACDelco business unit. ACDelco is a global independent aftermarket parts business, a brand of GM Service & Parts Operations. GM’s press release states that a sale will promote more rapid growth of ACDelco globally.
This is a part of GM’s ongoing effort to raise capital by selling existing assets. The Hummer brand is for sale for the same reason, and there has even been talk of selling the Renaissance Center, the company’s headquarters. The rumors behind recent news that GM is looking to acquire Chrysler from its owner Cerberus, indicate that a big motivation behind that deal is GM getting their hands on Chrysler’s reported $11.7 billion cash stockpile (GM certainly doesn’t need the nameplates or models in Chrysler’s fleet). From General Motors’ standpoint, it’s all about getting their hands on enough cash to keep the company going and meet their goal of having more liquid assets. GM’s short press release can be viewed after the jump.
General Motors Explores Potential Sale of ACDelco
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.
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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