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GM Hikes Estimated Charges on Opel Sale by 22%
General Motors Co. says it will book a charge of $5.5 billion (€4.9 billion) for the sale of its money-losing Adam Opel unit, up from an initial estimate of $4.5 billion.
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General Motors Co. says it will book a charge of $5.5 billion (€4.9 billion) for the sale of its money-losing Adam Opel unit, up from an initial estimate of $4.5 billion.
Chief Financial Officer Chuck Stevens attributes the increase to unspecified additional costs. Analysts previously noted that under terms of the sale GM agreed to retain Opel’s European pension deficit of €6.5 billion ($6.9 billion), including a portion of obligations covering currently active workers in Germany.
GM announced the €2.2 billion sale to PSA Group in March. The deal could be completed as soon as the end of July.
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