GM puts French factory, Hummer brand up for sale

[David]

AP

GM to put French factory, Hummer brand up for sale

Wednesday September 24, 4:38 pm ET

By Tom Krisher, AP Auto Writer

GM treasurer says company will put Strasbourg, France, factory and Hummer brand up for sale

DETROIT (AP) -- General Motors Corp.'s treasurer said Wednesday that the automaker is planning to put its Strasbourg, France, manufacturing operation and its Hummer truck brand up for sale, and it may announce more asset sales later this year.

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Company Treasurer Walter Borst said in a slide presentation at the Deutsche Bank Leveraged Finance Conference that the company expects to distribute marketing materials for both operations in October.

The slides posted on GM's Web site Wednesday say the assets under review are worth $2 billion to $4 billion. The presentation also says GM continues to review other asset sales and will make more announcements in the fourth quarter.

"We believe that we can monetize certain assets without impacting the strategic direction of the company," Borst said during his presentation, which was posted on GM's investor Web site.

GM and other automakers have faced liquidity problems as losses have mounted and U.S. sales have declined. GM announced a plan in July to cut $10 billion in costs and raise another $5 billion through asset sales and borrowing through the end of next year.

On Friday, the nation's largest automaker gave notice that it would draw the remaining $3.5 billion of a $4.5 billion revolving credit facility to boost its liquidity.

Borst said GM expects the global market to grow from 70.6 million in sales last year to more than 75 million in 2010, and says GM is positioned to capture that growth in emerging markets. The growth, coupled with cost cuts, factory capacity reductions and other management decisions, will set the stage for improved financial results by 2010, he said.

By 2010, GM will sell two-thirds of its vehicles outside the U.S., compared with 59 percent in 2007, he said.

He said GM plans to reduce its North American structural costs from $33.2 billion in 2007 to $26 billion to $27 billion in 2010. That figure includes savings from shifting retiree health care costs to a trust administered by the United Auto Workers, although the accounting of those savings could change, he said.

By 2010, the company also expects to reduce its hourly health care costs by more than $2 billion. The company spent $3.8 billion in 2007, he said.

Borst said GM is shoring up its liquidity and has the scale to be well positioned for an industry rebound.

"We're making changes to compete and win in what we think is an industry revolution," he said.

GM shares fell 37 cents, or 3.5 percent, to close at $10.35.

http://www.gm.com

:angry2: What a lousy day, Hummer should be a part of the Luxury Division with Cadillac. Stupid Stupid Move!

[daves87rs]

About time Hummer went....

[saturnd00d]

Stupid move? You mean smart move. There is no need to have Hummer aorund anymore. There aren't enough bighshots ordering blinged-out Hummers around to support the brand. Let's face it, that's pretty much what it's come down to.

[David]

I disagree, Hummer was never meant to be a 4x4 off road for everyone product line. It is and was meant to be a small product for the wealthier people who want a luxury offroad vehicle. THis product line has a place in the company. Yes they could have offset costs by sharing the suspension and drive train with Chevy and GMC as offroad options.

But Hummer will be missed in my book if they truly sell it.

[PurdueGuy]

If they could get rid of all the overhead involved with Hummer being a division-like brand, and just make it a brand name to be used or not used as the market dictates, then I would support the keeping of Hummer. In the short-term, I would fully expect the H2 should be killed, but the H3 is iffy, and the H4 would've been sweet. I made a thread about this a while back, but I personally think that some of GMs brands should be changed from being division-like entities, to just being brand names to be used or not used as they think they can get sales from the product. I would probably put everything but Chevy and Cadillac in this position, and all but those two in the same dealers. Of course, realities of the situation make this pretty much impossible.

[Camino LS6]

The HX could have been beyond huge, that is the one thing I see as a real loss here.

[Intrepidation]

So if they sell Hummer before Transformers 2, that buyer gets free advertising.

[Oracle of Delphi]

The Strasbourg, France plant is nothing more than a parts plant. I advocate moving anything GME owns out of France.

[daves87rs]

The Strasbourg, France plant is nothing more than a parts plant. I advocate moving anything GME owns out of France.

[daves87rs]

I disagree, Hummer was never meant to be a 4x4 off road for everyone product line. It is and was meant to be a small product for the wealthier people who want a luxury offroad vehicle. THis product line has a place in the company. Yes they could have offset costs by sharing the suspension and drive train with Chevy and GMC as offroad options.

But Hummer will be missed in my book if they truly sell it.

THe only way it could have a chnace is if it went Jeep " cheap"....it's a waste as a lux brand......

[Robert Hall]

THe only way it could have a chnace is if it went Jeep " cheap"....it's a waste as a lux brand......

Yeah, I'd never consider Hummer a 'luxury' brand..cheap, nasty interiors, worse than anything in a Chevy. They were a stupid, ugly bling toy, nothing more. Nothing in the same class as Range Rover, a real luxury SUV. They should scrap and recycle remaining inventory now.

[FUTURE_OF_GM]

The HX could have been beyond huge, that is the one thing I see as a real loss here.

+1 (times 1000)

The HX was a revolutionary concept.. Hopefully the concept hasn't died with the division and we'll see a GMC or Chevy version.

[turbo200]

Yeah, I'd never consider Hummer a 'luxury' brand..cheap, nasty interiors, worse than anything in a Chevy. They were a stupid, ugly bling toy, nothing more. Nothing in the same class as Range Rover, a real luxury SUV. They should scrap and recycle remaining inventory now.

while this move generally should not be considered a loss for the company as a whole, since they have similar product in similar genres reaching similar customers from other upscale brands, Hummer has a unique image thanks to styling tricks and imposing image as well as mass acceptance. hummer was unique within the company and did have a luxury image that could have aspired to match a Land Rover. The biggest fault was in poor execution. quality perception did not endure, if it was already poor compared to competitors when it was released, imagine after years when competitors are changed or newer models introd, and the quality perception gap has continued to widen. this was hummer's biggest downfall. but they were definitely a chic toy/tool. a more focused H2 that is lighter in structure, offering more concrete powertrain options, and more flexible interior space whilst maintaining all the rugged image, could still find a limited audience going down the line.

[David]

Turbo 200 I would totally agree with what you have stated. Most people also seem to forget or not realize that the hummer had differentials that gave it off road capabilities greater than Jeep, Land rover or any other 4x4.

I also agree with PurdueGuy as Hummer should be a name which is part of the Cadillac Division. Chevy and Saturn would be standalone divisions and Pontiac, Buick and GMC end as seperate divisions and become just one with name plates for customer marketing / sales appeal. Stream lining would save a ton of money I believe for GM.

[pow]

The Strasbourg, France plant is nothing more than a parts plant. I advocate moving anything GME owns out of France.

The GM 5L40E in our 5-series has been treating us well... I believe it was made in Strasbourg. And, besides, isn't that Vichy France?

[David]

Who cares if it comes from France, this is a global economy, so location means nothing to me.

[longtooth]

Who cares if it comes from France, this is a global economy, so location means nothing to me.

Yes, the global economy has been a smash. Do you watch the news? Read anything?

[turbo200]

hummer serves as yet another broken priority in need of investment at a time when GM's product line is mostly outdated and poor in relation to heated competition, at least in America. GM has bigger priorities at the moment, and the business case for what i outlined would be better served by an independent outfit that could find the hardware, maybe with an updated Land Rover architecture based on an alluminum chassis.

[Oracle of Delphi]

HUMMER is irrelevant and never was a core brand.

[turbo200]

HUMMER is irrelevant and never was a core brand.

just like Saab with its paltry >200,000 global sales volume and 'never turned a profit' status. last i checked hummer required little to no investment, was built on an existing chassis, and definitely turned a profit, whilst being a media darling for a moment in time. on the list of GM's pointless expenditures and idiotic capital investments, HUMMER doesn't rank as the worst.

[Oracle of Delphi]

just like Saab with its paltry >200,000 global sales volume and 'never turned a profit' status. last i checked hummer required little to no investment, was built on an existing chassis, and definitely turned a profit, whilst being a media darling for a moment in time. on the list of GM's pointless expenditures and idiotic capital investments, HUMMER doesn't rank as the worst.

I never said HUMMER was the worst, I just said it was irrelevant. As for Saab, I think you will find it has quite a few friends in GME and GM, so it's not going anywhere.

Edited September 26, 2008 by Pontiac Custom-S

[Z-06]

I never said HUMMER was the worst, I just said it was irrelevant. As for Saab, I think you will find it has quite a few friends in GME and GM, so it's not going anywhere.

Bedeuten Sie, dass Saturn sogar schlimmer ist?

[Oracle of Delphi]

Bedeuten Sie, dass Saturn sogar schlimmer ist?

Nicht in den am wenigsten. :AH-HA_wink:

[Z-06]

Nicht in den am wenigsten. :AH-HA_wink:

Ich erhalte es. Ich habe nichts gehört

[Chicagoland]

Well, if so P-O, then hand some $$ to GM to help?