General Motors Corp. is planning to put its Strasbourg, France, manufacturing operation up for sale along with its Hummer truck brand. Company Treasurer Walter Borst says in a slide presentation for the Deutsche Bank Leveraged Finance Conference that the company expects to distribute marketing materials for both operations in October. The slides posted on GM's Web site Wednesday say the assets under review are worth $2 billion to $4 billion.

The presentation also says GM continues to review other asset sales and will make more announcements in the fourth quarter.

"We believe that we can monetize certain assets without impacting the strategic direction of the company," Borst said during his presentation, which was posted on GM's investor Web site.

GM and other automakers have faced liquidity problems as losses have mounted and U.S. sales have declined. GM announced a plan in July to cut $10 billion in costs and raise another $5 billion through asset sales and borrowing through the end of next year.

Borst said that GM expects the global market to grow from 70.6 million in sales last year to more than 75 million in 2010, and says GM is positioned to capture that growth in emerging markets. The growth, coupled with cost cuts, factory capacity reductions and other management decisions, will set the stage for improved financial results by 2010, he said.

By 2010, GM will sell two-thirds of its vehicles outside the U.S., compared with 59 percent in 2007, he said.

He said GM plans to reduce its North American structural costs from $33.2 billion in 2007 to $26 billion to $27 billion in 2010. That figure includes savings from shifting retiree health care costs to a trust administered by the United Auto Workers, although the accounting of those savings could change, he said.

The company also expects by 2010 to reduce hourly health care costs by more than $2 billion. The company spent $3.8 billion in 2007, he said.

Borst said GM is shoring up its liquidity and has the scale to be well positioned for an industry rebound.

"We're making changes to compete and win in what we think is an industry revolution," he said.

Written By TOM KRISHER

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