Weekly News Roundup
Fire sale in Detroit, Skyrocketing gas prices, Fit figures
GM offers early retirement to thousands
In other news, GM has been looking for a strategic partner to assume control of its internal financing arm, General Motors Acceptance Corporation – or GMAC. This week, the beleaguered automaker successfully unloaded 78 percent of GMAC’s Commercial Holding Corporation, its real estate finance unit, to a group of investors, raising 1.5 billion dollars in cash. After the Commercial Holding Corporation repays billions in inter-company loans at the close of the deal, the total windfall to GM from the sale is estimated to be greater than 9 billion dollars. That oughta get it through the next year or so.
Selling assets to raise cash is catching on. Jaguar, which has been bleeding Ford Motor Company dry for a decade, sold Browns Lane, where the iconic British automaker has operated manufacturing and business facilities since 1951. Currently, Browns Lane serves as Jaguar’s headquarters, the site of its heritage car museum, and employs about 500 workers who craft metal trim and wood veneers for Jaguar, Land Rover and Aston Martin models. Browns Lane car manufacturing ceased in 2005, when production of the XJ sedan and XK sports car were moved to a different facility. It is not known how much money that cash-strapped Jaguar netted from the sale of the 117-acre site.