G.M. May Sell ACDelco Unit

[Bozita]

Source: NY Times

G.M. May Sell ACDelco Unit
OCTOBER 22, 2008, 11:54 AM


General Motors has revealed another asset that might land on the auction block as the giant automaker seeks to raise as much as $4 billion from divestitures.

That asset is ACDelco, its aftermarket car-parts business. G.M. said Wednesday it hired Merrill Lynch to explore a potential sale of the unit, which provides replacement parts, such as batteries and oil filters, as well as repair parts, such as radiators and alternators, for both G.M. and non-G.M. automobiles.

G.M. has been negotiating with Chrysler, which is controlled by the private equity firm Cerberus Capital Management, about a potential merger between the two companies. Both are suffering from steep declines in auto sales.

But analysts have said such a merger would require billions of dollars in additional financing, something that banks might not provide in these jammed-up credit markets.

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