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Report: GM in talks with Indian, Chinese and Russian firms over Hummer sale

Report: GM in talks with Indian, Chinese and Russian firms over Hummer sale

Siddarth Raja August 1st, 2008 Siddarth Raja By Siddarth Raja Author August 1st, 2008
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December 31st, 1969 Less than two months after General Motors first announced that its Hummer brand was up for review, reports have emerged claiming the U.S. carmaker is in talks with firms based in India, China and Russia. India’s Mahindra & Mahindra (M&M), which has previously expressed interest in developing more SUV models, was reported within days after the original review announcement to be interested in acquiring Hummer, but people close to the matter claim M&M is more concerned about launching its own range of SUVs in the U.S. market. While this is likely true (M&M has already signed up 300 dealers in North America to sell its own SUV models), M&M was also one of the first bidders interested in acquiring Britain’s Land Rover but lost out to rival Indian carmaker Tata Motors. GM, meanwhile, has hired a number of consultants and investment bankers to review the Chinese and Russian markets for potential buyers for the carmaker’s assets, one of the sources told Reuters reporters. However, the source did not reveal which Russian and Chinese firms GM was talking with. One of the major problems with Hummer is the massive amount of cash the brand needs to turn around its fortunes. Hurt by record fuel prices and changing demand for ‘greener’ vehicles, Hummer's U.S. sales have fallen more than 40% in the past six months. While demand for Hummer may be down in the U.S., the brand has a strong following in emerging markets such as Russia and China. Some of the other parties rumoured to be interested in acquiring Hummer include Russian billionaire Oleg Deripaska, who controls GAZ, Russia's second-largest automaker, Shanghai Auto, Chery and Geely Auto.
Report: GM in talks with Indian, Chinese and Russian firms over Hummer sale

Report: GM in talks with Indian, Chinese and Russian firms over Hummer sale

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Less than two months after General Motors first announced that its Hummer brand was up for review, reports have emerged claiming the U.S. carmaker is in talks with firms based in India, China and Russia. India’s Mahindra & Mahindra (M&M), which has previously expressed interest in developing more SUV models, was reported within days after the original review announcement to be interested in acquiring Hummer, but people close to the matter claim M&M is more concerned about launching its own range of SUVs in the U.S. market.

While this is likely true (M&M has already signed up 300 dealers in North America to sell its own SUV models), M&M was also one of the first bidders interested in acquiring Britain’s Land Rover but lost out to rival Indian carmaker Tata Motors.

GM, meanwhile, has hired a number of consultants and investment bankers to review the Chinese and Russian markets for potential buyers for the carmaker’s assets, one of the sources told Reuters reporters. However, the source did not reveal which Russian and Chinese firms GM was talking with.

One of the major problems with Hummer is the massive amount of cash the brand needs to turn around its fortunes. Hurt by record fuel prices and changing demand for ‘greener’ vehicles, Hummer's U.S. sales have fallen more than 40% in the past six months. While demand for Hummer may be down in the U.S., the brand has a strong following in emerging markets such as Russia and China. Some of the other parties rumoured to be interested in acquiring Hummer include Russian billionaire Oleg Deripaska, who controls GAZ, Russia's second-largest automaker, Shanghai Auto, Chery and Geely Auto.

Tags: Industry, General Motors

Posted in: HUMMER, News


Comments (6 total)

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  1. By Gus #1, Posted: 8/1/2008

    Would they still be built in the US?

    I would think they would sell well in the wealthy middle eastern countries, I'm surprised you never hear of some company in Dubai wanting it.

  2. By dcars #2, Posted: 8/1/2008

    i bet it would sell better in the middle east and Africa, I doubt that they would still make it in the US. Too bad gm can't afford it anymore.

  3. By NoNameDenton #3, Posted: 8/1/2008

    Russia would be a good bet, SUVs are extremely popular there, polar opposite of the US now.

  4. By Roy #4, Posted: 8/2/2008

    Much as I hate Hummers, I still think this is the wrong direction to go. There's a market for these vehicles - it may just not be in the US so much anymore. So why lose one of your most widely-known brands that carries a fierce loyalty? Presumably because the dealer network is taking too much to support, but that's a different problem that can be fixed by other means.

    Of course, it has recently become clear that GM is desperate for cash...

  5. By Gus #5, Posted: 8/2/2008

    I agree with Roy, why not build them for export to countries that like them?

  6. By NoNameDenton #6, Posted: 8/2/2008

    I want to know what Hummer will do if sold since it uses GM platforms and engines.

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