GM to pitch Hummer, French site: Fund-raising at fast pace

Sep 25, 2008 (Detroit Free Press - McClatchy-Tribune News Service via COMTEX) -- GM | Quote | Chart | News | PowerRating -- Sep. 25--General Motors Corp. plans to distribute marketing materials for its Hummer brand and a French transmission plant in October as part of a plan to accelerate the $15-billion cost-cutting and fund-raising plan it announced in July, Treasurer Walter Borst said Wednesday in a presentation to analysts.

Speaking at the Deutsche Bank Leveraged Finance Conference, Borst said GM is progressing on a fast pace in the cash-generating plan it announced July 15 and has hired "additional outside resources to help us meet or exceed these targets."

Borst said GM hopes to raise $2 billion to $4 billion in cash through asset sales, but is considering the sale of assets "significantly in excess of this amount."

"I would anticipate additional announcements for you here in the fourth quarter," he said. "We believe we can monetize certain assets without impacting the strategic direction of the company."

GM issued what it refers to as its liquidity plan on July 15 to quiet Wall Street concerns that the company may not have enough cash to sustain itself until 2010. While the plan initially quelled that concern, more recent mayhem in financial markets again has the automaker confronting worries that it doesn't have enough cash to make it through the current downturn and may now have more trouble raising money.

GM Daewoo said Wednesday that it will draw the rest of a $2-billion line of credit from the Korea Development Bank for new car development and facility improvements. A GM Daewoo spokesman said the loan is unrelated to GM's North American restructuring.

GM shares fell 37 cents to $10.35.

Contact KATIE MERX at 313-222-8762 or kmerx@freepress.com.

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