Powered by MOMENTUM MEDIA
investor daily logo

Classic car clearance

  •  
By
  •  
3 minute read

We've heard of plenty of cases where investors have been forced to sell assets for a variety of reasons, such as meeting margin calls and satisfying liquidity requirements.

Well they're certainly in good company now, with news General Motors (GM) in the United States has begun to sell its collection of classic cars.

According to news reports, 100 classic cars are on auction, including the Chevrolet Camaro featured in the movie Runaway Bride with Julia Roberts (albeit breaking down in the movie).

But unlike other investors, GM is not selling up because it has to, but because it wants to engender the right image in these tough economic times, which have seen the company taking on a substantial bailout package from the US government.

From the reasoning it seems the message of outside perception may have finally got through to the executives, who flew to Washington to ask for the bailout money in a private Learjet.

==
==

Unfortunately the move looks like it may have backfired, as car sales have not been boosted by it.

And the reason - people now think GM is about to fold seeing it has a massive government loan and is selling off treasured, if not ultra-valuable, assets.

Sometimes you just can't win.