Mar 6, 2017
The fine print behind the GM deal
The fine print of the deal suggests something slightly different, and shows that GM has in fact taken a hit of up to £6bn in order to get shot of Vauxhall and Opel. First, a big chunk of the price - three-quarters of a billion pounds - is not for car plants, but for loans taken out by the owners of Opel and Vauxhall cars through GM's finance arm. Third, the Detroit giant will take an accounting hit of £3.2bn on the deal - a confirmation that the value it had placed on Opel and Vauxhall in its own books was born more out of hope and the scale of past investments than any solid expectation of future profits. GM's financial agony does not mean, of course, that Vauxhall and Opel will not prosper under their new owner. GM continues to shrink its ambitions and focus on the future.
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