Business News - GM may cull overlapping brands

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GM may cull overlapping brands

DETROIT (UPI) -- General Motors Corp. may cull certain overlapping vehicle brands from its product line as it swings over to more fuel-efficient vehicles, a U.S. source said.

The source said GM could sell or eliminate a brand, but the company repeated its assertion that the Hummer is the brand only currently being reviewed, The Detroit News reported.

Company spokesman Tom Wilkinson said the company could take steps to cut "structural costs" or sell "non-core assets."

"In addition, we will consider opportunistically executing financing transactions in the global capital markets, although we have nothing to announce," he said.

Analysts at J.P. Morgan have said GM needs to raise capital, a challenge given the sliding value of GM stock, the report said.

At Monday at the close of the market day, GM stock was valued at $10.24 per share, the News reported.

GM may cut more jobs, but auto industry analyst Jim Hall at 2953 Analytics LLP in Birmingham, Mich., said eliminating similar brands will mean "less duplicated sheet metal at dealerships."

"Clearly some current products don't have a place in the larger scope of things," Hall said.

Copyright 2008 by United Press International

This news arrived on: 07/08/2008

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