GM Finds Buyer for Hummer – Reportedly in China

Update 1:30 p.m. EDT:  Bloomberg is reporting that the buyer of Hummer is Sichuan Tengzhong, a privately owned maker of special-use vehicles, structural components for highways and bridges, and construction machinery, according to what Bloomberg found on that company’s website.

By Brendan Moore

06.02.2009

hummer-logoGM has Saab, Saturn and Hummer up for sale as part of their restructuring efforts, and the brand that many people thought would be the last one sold (and many thought it wouldn’t ever sell) apparently has a buyer. GM executives will state this morning as part of its second day of bankruptcy proceedings that they believe they have found a buyer for the Hummer brand. They are so far refusing to identify the next prospective owner of Hummer.

The buyer will reportedly take over Hummer by the end of the third quarter, but GM will continue producing the H2 and H3 trucks, as well as the SUVs under contract for the new owner for at least the first year. The new buyer apparently also intends to develop alternative-energy models for Hummer in the next few years.

GM is also mum on the purchase price, although previous interested parties from China and Russia were thought to be bidding around $500 million USD for the Hummer brand. The Hummer products still enjoy a certain amount of cachet in other regions of the world.

The Saab and Saturn brands are thought to have three serious bidders and one interested buyer respectively. Another GM brand, Pontiac, is not for sale and will simply be shut down, as GM did with Oldsmobile earlier this decade. If sales efforts are not successful with any of the three brands being offered, GM plans to go to Plan B, which is a very basic plan – the company will shut the brands down, along with Pontiac.

2007-hummer-h2-suv

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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5 Comments

  1. To whoever purchases Hummer: have fun with this caricature of a passenger vehicle.

  2. It sounds like these things will still be sold in America, so that is kind of puzzling.

    How much of a market can be left after the Detroit 3 sell their same-size wares?

  3. I wonder if it’s a Chinese buyer. They get a dealer network and some sales while they get the Chinese made stuff ready to sell in the United States.

  4. A Chinese or Russian buyer would make a lot of sense. With the existing dealer network, the purchase would provide inroads into the US, as well as brand recognition (even considering the Hummer brand is at it’s lowest level since it’s inception). In addition, Hummer has become fairly well known and popular in parts of the Middle East. If the same buyer was able to get Saturn, and overcome the challenges of closing and combining various Hummer and Saturn franchises, they would have the benefit of a car brand as well, since launching an unknown Russian or Chinese brand would be difficult, and a Hummer car line would be laughable.

  5. Luke, the Hummer brand itself is laughable.

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