Mahindra & Mahindra keen to purchase Hummer

Posted Mon Aug 4 2008 4:32 PM by Viknesh Vijayenthiran

The rest of the SUV market is screeching to a halt, but Indian manufacturer Mahindra & Mahindra wants to bring a whole new line of the vehicles to America. The company is developing a network of around 300 dealerships across the U.S. to sell the vehicles, with a $125,000 fee being asked from dealerships to become franchisees.

While for now the vehicles will be sold under the Mahindra & Mahindra name, there is also the possibility of the company acquiring the rights to another name and using that - with the list of possibilities including Hummer.

General Motors, owner of the Hummer name, has been quietly distancing itself from the brand and is looking to axe it from its lineup due to its sudden fall in sales - largely caused by the consumer shift towards small, economical cars and the subsequent distaste for big, fuel-thirsty vehicles like those Hummer makes. Hummer's sales for the first half of this year reflect a 40% drop, but this hasn't turned off Mahindra & Mahindra, who earlier missed the opportunity to acquire the Land Rover and Jaguar titles from Ford to rival Indian company Tata, reports AutoTelegraaf.

However, acquiring the Hummer name will be an expensive proposition, and the demand for SUVs is at one of its lowest points for the U.S. - but according to Reuters, several sources have stated that if the price is right, Mahindra & Mahindra will buy the Hummer name.

Reader Comments

Mon Aug 4 2008 4:45 PM
Layne says

I'm sorry but Hummer being owned by anything but an American company just seems wrong. I hope this sale doesn't include the actual REAL Humvees. If it's just the yuppy brand that sells poser H2 and H3s then that's fine.
Mon Aug 4 2008 7:19 PM
NoNameDenton says

Next up Tata buys Chrysler to get Jeep and the Chinese buy Ford.
Tue Aug 5 2008 2:23 PM
dcars says

I believe the that the link between the real humvees and gm's hummer was broken a few years ago.

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