Despite earlier indications that M&M was looking closely at purchasing Hummer, the troubled uber-SUV Hummer brand has an image of gas-guzzling excess that does not fit well with M&M's 'lean warrior strategy,' according to the company's vice chairman, Anand Mahindra.
"There has been a lot of speculation. I want to say categorically we are not pursuing Hummer," he said. The company is currently pursuing an environmentally-conscious image for its products, and feels the Hummer brand would damage that, reports Automotive News.
Changfeng, on the other hand, simply seems concerned with the financial aspects of the deal. One of the firms rumored to be in talks with GM earlier this month, the Chinese company sees no future for the brand under its ownership. Difficulty in marketing the vehicle, either in the U.S., Russia, India or in its home market of China and the high expense involved with producing the vehicle for military use outweigh any potential the brand might have for profit, according to a report from Reuters.
Oil prices played a major role in that decision. Talks between GM and Changfeng progressed to the point of a tour of the Hummer's U.S. production facility before the Chinese company backed out, indicating there was serious interest, at least initially.
With two of the largest potential contenders for the brand having pulled out of the process early on, hopes of GM selling the Hummer name for anything other than a significant loss are quickly evaporating. Anything is still possible, but the reality of the current marketplace and Hummer's relevance to it may be settling in. Rumors of possible interest from India's Tata Motors, which now owns Jaguar and Land Rover, still persist, however.
Reader Comments
Mon Aug 18 2008 11:49 AM
Megalon says
Who would seriously want this brand right now? SUVs w/ big engines are no selling & that brand is usually @ the bottom of reliability surveys.
Mon Aug 18 2008 12:29 PM
Laz says
GM should keep this brand for only Military fleets across the globe.
Mon Aug 18 2008 1:30 PM
Andrey says
i see no possible future for Hummer except, as Laz said, military purpouse with the Humvee, clients just can't afford in this day and age a gas-guzzling car like that
Tue Aug 19 2008 7:40 AM
Jim says
Curious about M&M's disinterest. An on going rumor regarding M&M's plans to produce a version of its mid size pick up and SUV in the US has focussed on a production facility in Ohio. No word on where. Could it be that M&M passed on Hummer because a stronger brand is quietly in play, Jeep?
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