GM now expects $5.5B charge from Opel sale


General Motors now expects the charge for its sale of Opel to PSA Group to reach $5.5 billion vs. its previous estimate of $4.5 billion, due to additional costs associated with the deal, Chuck Stevens, GM’s CFO, said on Monday.
Opel said earlier this month that its sale to PSA could be completed as early as July 31, pending regulatory approval from antitrust authorities, after the companies initially said the transaction could be completed by year end.
GM said in March that it would sell its chronic money-losing European operations of Germany’s Opel and UK sister brand Vauxhall to PSA. At the time, the automaker said it would take a primarily non-cash special charge of $4 billion to $4.5 billion in connection with the sale. GM said it would pay PSA 3 billion euros ($3.18 billion) to settle transferred pension obligations.
Stevens also told analysts on a conference call that GM expects new vehicle sales in the U.S. to hit a seasonally adjusted annual rate of “low 17 million” units for 2017 and reiterated the company’s target to bring U.S. inventories of its vehicles down to 70 days’ supply by December from 110 days in June.
Fuente: Automotive News