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.