AutoBlog: REPORT: GM to announce tentative sale of Hummer tomorrow

[NewsFeeder]

Filed under: SUVs, GM, HUMMER

According to a report by the Wall Street Journal, General Motors plans to announce a tentative sale of the Hummer brand less than a day after filing for Chapter 11 bankruptcy protection. Although GM won't release the name of Hummer's (possible) future owner(s) on Tuesday, the WSJ's sources say that a deal could be struck by the end of the third quarter and the H2 and H3 will continue to be produced at GM's plants in Indiana and Louisiana.

It's been widely accepted that if GM couldn't offload Hummer this month, it would be killed during the bankruptcy proceedings, and the General has been entertaining bids from a interest parties, including a Chinese firm, for somewhere in the sub-$500 million range since late last year. When the announcement is made tomorrow, expect GM to be hyping the sale as part of its turnaround efforts and that the SUV purveyor's new parent will continue to work on expanding the Hummer line, including the production of future alternative-fuel models.

[source: Wall Street Journal]

REPORT: GM to announce tentative sale of Hummer tomorrow originally appeared on Autoblog on Mon, 01 Jun 2009 20:28:00 EST. Please see our terms for use of feeds.

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[wskikevin]

Here is an email recieved from this morning....

Dear GM Suppliers,

GM announced it has entered into a memorandum of understanding (MoU) with a buyer for HUMMER, its premium off-road brand. This transaction is the result of GM's strategic review of the HUMMER brand and the company’s ongoing restructuring efforts.

The sale is expected to close by the end of third quarter of this year and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The deal is expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at HUMMER dealerships around the country. The transaction also includes plans by the investor to aggressively fund future HUMMER product programs. Under terms of the MoU, the identity of the purchaser and proposed financial terms of the agreement are not being released at this time.

As part of the proposed transaction, HUMMER will continue to contract vehicle manufacturing and business services from GM during a defined transitional time period. For example, under the proposed agreement, GM’s Shreveport Assembly plant would continue to contract assemble the H3 and H3T through at least 2010.

"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. Today’s announcement is great news for HUMMER’s current and future customers, dealers, suppliers and employees around the globe.”

Other terms and conditions specific to the sale are not being disclosed at this time. Citi acted as financial advisor to General Motors Corporation.

Under the proposed agreement, its expected that GM will continue to procure parts for the continued production.

Sincerely,

Bo

Bo Andersson

GM Group Vice President

Global Purchasing and Supply Chain

[z28luvr01]

Well, I think the Obama administration was strongly against Hummer going to the Chinese. Hopefully it stays American.

[Drew Dowdell]

Penske?

Could be the truck line to go with the Saturn dealerships.

[SoCalCTS]

How about Navistar or John Deere? Could it be one of them?

[A Horse With No Name]

Penske?

Could be the truck line to go with the Saturn dealerships.

...interesting thought, Oldsmoboi...

Chris

[BigPontiac]

Autoblog is reporting the purchase was by a Chinese company that currently doesn't make autos. Link to article