“Old GM” is Having a Fire Sale
Any real estate investors out there looking to buy some property on the cheap? Do you have any interest in old manufacturing plants? How about a golf course, a rectory or 21 houses? Well, you’re in luck. General Motors Corporation, which officially died on December 15th, 2011, has a vast portfolio of discarded assets and is selling them off at garage sale prices. For a fascinating look at what’s left of GM, check out this article from Jalopnik.
After the carnage of the bankruptcy and the culling of Pontiac, Saturn, Hummer and Saab in 2009, GM was split into two entities. The new, unencumbered General Motors Company and the “Old GM,” which was saddled with 89 shuttered properties in 14 states across the country. The liquidation of these properties is being handled by Racer Trust at pennies on the dollar.
For example, it currently costs about $1.2 billion dollars to build a manufacturing plant in the U.S. The going price for one of GM’s old plants is around $2 million and comparatively, a screaming deal. The fire sale isn’t without speed bumps though. A buyer must meet a laundry list of criteria from federal and local governmental agencies and it’s complicated enough to require a seminar for perspective suitors.
What might look like a worn out old factory to some is hallowed ground for us car fans. Take the Willow Run Plant in Michigan currently on the block. Built by Ford and then sold to Kaiser, it was acquired by GM which made bombers in WWII and numerous Chevy models including the entire production run of the Corvair.