General Motors is keen to unload its money-losing European divisions, but it’s going to cost another $1 billion, according to Reuters. The automaker’s chief financial officer, Chuck Stevens, told analysts on a conference call that the costs associated with the deal warrant the extra monies.
When GM announced the sale of Opel, Vauxhall and its European operations to PSA Groupe, it said it would take a non-cash special charge of $4 to $4.5 billion in the process. It also stated it would pay $3.18 billion to settle pension obligations.
During the call, Stevens also said GM has adjusted its new vehicles sales to “low 17 million” as new car sales continue to plateau. Additionally, plant shutdowns are planned to help bring GM’s inventory rate down to a 70 days’ supply by this coming December.