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AUTOS: GM Finds Buyer For Hummer Division
Written by: Bob Golfen   
06/02/2009
Detroit, Mich.
 
General Motors has reached an agreement with a Chinese buyer for the Hummer brand, one of the divisions that GM said it would shed during restructuring, the automaker announced Tuesday.

The Hummer H2 was developed by GM to replicate the military Humvee in a more consumer-friendly package. (Photo: Hummer) ยป More Photos
The perspective buyer is Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., based in Chengdu, and the sale is expected to close during the third quarter of this year, GM said.

In the sales proposal, Tengzhong would retain Hummer's network of 150 dealerships and keep upper management in place, GM said. The deal would save 3,000 jobs in manufacturing, engineering and Hummer sales.

GM, which filed for bankruptcy protection on Monday, did not reveal the price tag for the Hummer brand.

“Hummer is a strong brand,” said Troy Clarke, president of GM North America. “I’m confident that Hummer will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker .”

Under the pending sales agreement, the new owner would continue to have GM provide manufacturing and business services during a specific time period. For instance, the Shreveport Assembly plant would continue to build the H3 and H3T through at least 2010, GM said.

Hummer sales dropped during 2008 as gas prices climbed into the $4 per gallon range, losing more than 50 percent in sales compared with 2007. Sales never recovered once the financial crisis took hold.

GM bought the Hummer brand in 1999 from AM General,
which had been marketing a civilian version of the military Humvee. GM went on to develop the popular Hummer H2, a boxy heavyweight that was adored for both its rugged image and off-road abilities, but targeted by environmental groups as wasteful and excessive.

The smaller H3 version arrived a few years ago, offering a less-aggressive image and better fuel economy.

"GM has developed Hummer into a globally recognized off-road brand,” said James Taylor, Hummer chief executive officer. “The proposed agreement will enable us to continue that growth and maximize the brand’s potential through new, innovative off-road vehicles with improved efficiency and alternative-fuel powertrains.”

Bob Golfen, Automotive Editor for SPEEDtv.com, is a veteran auto writer based in Phoenix, Arizona, who has driven and evaluated essentially every new vehicle sold in the United States. A lifelong car enthusiast with a passion for collector cars, car culture and the automotive lifestyle, he annually attends and writes about Arizona's famous January collector-car auctions, focusing on Scottsdale’s monumental Barrett-Jackson Collector Car Event. SPEEDtv.com fans email veteran Automotive Editor Bob Golfen at


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