GM Finds Buyer For Hummer, But Who Is It?
A day after filing for Chapter 11 bankruptcy protection, General Motors has announced it has found a buyer for its Hummer brand of SUVs. GM has not, however, named the party.
Earlier reports indicated that of the short-list of three potential buyers none of the companies were automakers. One is apparently a U.S. company and the two others are from overseas. The list apparently included wealthy individuals and private equity firms.
General Motors has also not revealed the deals of the sale, including just how much it got for the Hummer brand. The deal does give some hope to Hummer as the new company has plans to aggressively fund the development of future vehicles. The success of that plan would of course depend on if buyers return to their massive SUV buying ways once the recession subsides.
In 2008, 27,485 Hummers were sold in the U.S., down 51 percent from the year previous.
The good news in the interim is that the sale will save almost 3,000 jobs in manufacturing, engineering and at Hummer dealerships. GM will also continue to assemble the H3 and H3 SUT for the new company through 2010.
The deal is expected to be finalized by the third quarter of this year.
In the next several weeks GM is also expected to announce buyers (or at least lists of potential buyers) for Saab and Saturn.
[Source: Automotive News]
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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