GM Defense Sold To GDFOR RELEASE: March 3, 2003
General Motors Completes Sale of Defense Unit to General DynamicsNEW YORK – General Motors today announced that it has completed the sale of GM Defense -- its former Light Armored Vehicle (LAV) business -- to General Dynamics Corporation for approximately $1.1 billion in cash.
Proceeds from the sale will help GM to attain its previously communicated goal of generating $10 billion in cash in 2003 and strengthening its balance sheet.
As a result of the sale, GM will report a gain of slightly under $600 million after tax, or about $1 per share of GM $1-2/3 par value common stock, in the first quarter of 2003.
GM Defense units included in the sale are research, design, and manufacturing facilities in London, Ontario; Goleta, California; Adelaide, Australia; and Kreuzlingen, Switzerland. GM retains its Military Trucks business, located in Troy, Mich., which becomes part of GM North America’s Fleet and Commercial Operations.