GM's Hummer sale urgent, seeking year-end deal

Posted Wed Sep 3 2008 2:01 PM by Nelson Ireson

General Motors' Chief Operating Officer Fritz Henderson has revealed that the company views the sale of the Hummer brand as an urgent matter, and hopes to close the deal by the end of the year, or early in 2009 at the latest. Although Henderson refused to disclose any names, he did state that several companies have expressed serious interest in buying the brand.

“We are trying to approach this (Hummer sale) on an urgent basis,” Henderson said. "End of this year is a fair amount of time. It can conceivably happen ... but if it takes us to early next year, that is okay, too." He went on to say that it would be premature to confirm a deal had been made, reports MSNBC, but that of itself indicates a preliminary deal may already be in the works. Two of the previously imagined front-runners for the Hummer acquisition, Mahindra & Mahindra and China's Changfeng, have recently announced their non-interest in the company, so the identities of the remaining suitors is a mystery.

Talk of the sale of Hummer dates back to June, when just a few weeks after announcing a major corporate restructuring program and the possible sale or complete reorganization of the Hummer brand, General Motors hired mega-finance corporation Citibank to explore 'all of the options' available in dealing with the troubled SUV marque.

Hummer brand vehicles sold 62% fewer vehicles in May 2008 than they did the year before, and sales are down about 40% through the first half of the year. Some of Hummers dealers have expressed their displeasure with the public way GM has chosen to handle the tough times at Hummer, arguing that airing the nameplate's dirty laundry won't help it weather the short term. Whether the brand can survive in the long term - whoever ends up owning the name - will depend on its ability to adapt to the changes facing the industry as a whole.

Reader Comments

Tue Jun 24 2008 2:10 PM
Fan says

How hard would it be for them to get a diesel engine, alternate fuel, or hybrid option?

Hummer as a namebrand has a lot of goodwill.

I think its a mistake on their part.
Wed Sep 3 2008 5:21 PM
NoNameDenton says

I am with Fan, but I am better good money a consortium of Arab banks or companies get Hummer, they show the most interest, not to mention Hummer slaes do well in the Middle East.
Wed Sep 3 2008 5:21 PM
NoNameDenton says

Betting not better, stupid fingers.
Thu Sep 4 2008 10:31 AM
Edward says

Everyone here is in agreement. 2 points to the Hummer survival: 1) Diesel or hybrid engines. 2) Concentrate sales in the gulf region. The same things Gm could have done with the Cadillac V12 which recently got axed. GM has no intelligent auto execs????

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