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

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.