Two Arab investors interested in HUMMER
The HUMMER brand isn't exactly sterling here in the States due to high fuel prices and its standing as the poster vehicle for green groups trying to save the environment from the evils of CO2 emissions. That's probably the biggest reason GM is looking to offload the brand, and while it doesn't seem likely that anyone would want the marque, there are interested parties. According to GM's Middle East Managing Director, Terry Johnsson, one group is a pair of Arab investors. The Middle East has been a player in the automotive landscape over the past few years, as the region is rife with cash and oil and has growing transportation needs. Arab investors were 50% of the Aston Martin sale in 2007, and Abu Dhabi's investment group purchased 5% of Ferrari in 2005.
Many of the early suitors for the HUMMER brand have since decided to bow out. Whether the final buyer is Tata Motors, investors from the Gulf, or some yet unknown party, the General will want to move quickly before the brand's value falls any further. Thanks for the tip, Epyx!
[Source: Reuters]
Reader Comments (Page 1 of 1)
DannyBoyUK 1:32PM (8/26/2008)
First comment I hope!
But seriously, it would be the people who own the oil who buy HUMMER, wouldn't it? It just makes sense
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MachinaDC5 1:43PM (8/26/2008)
Correct, that's called vertical integration.
crappy 1:45PM (8/26/2008)
GOOD! I am glad it is Dubai and not some European crapass.
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DannyBoyUK 1:50PM (8/26/2008)
It would never be a European company buying HUMMER anyway, not with oil costing so much in Europe. This is why an Arabian company makes perfect sense - they own the oil.
Cire 1:54PM (8/26/2008)
Sell it while you can, GM!
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Brian 2:00PM (8/26/2008)
GM does need to dump the Hummer brand because of horrid sales and the sake of offsetting their CAFE averages. However, It still makes me worried about more and more foreign countries owning American buisnesses. If this trend continues, all of our money will be leaving this country. Am I the only one seeing the future of our country only holding corporate headquarters with illegal immigrant labor service jobs? Some people may argue that what we need. I think not. We need to keep every single job here for our future no matter how people percieve non college jobs as being worthless for worthless people. Only a very small portion of Chinese people are college graduates yet they stand to pass our wealth within the next ten years. Why? Because we have given them all of our jobs!! Our free enterprise market is the greatest in the world but it needs to be for American people only. We need to close our doors to foreign countries sticking their fingers in it. More and more of our money is leaving our country. Its the same as buying oil from a forign country just as you buying a microwave from a foriegn country. The money is going to them. We are not allowed to do any buisness in half of these countries because they have closed the door to us because they already know better. They are thinking ahead about their future. We need to do the same.
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Eddie Saenz 2:46PM (8/26/2008)
Finnally someone making sense in this blog, GM needs to hold on to this brand, people should be upset about this as much as they were when Chrysler merged with Mercedes
JD 4:20PM (8/26/2008)
That's what happens when our economy is as it is: They own all our debt already, what else is there to buy? Answer: Our physical capital. For recent examples, see: The Chrysler Building, Budweiser.
Wally 2:00PM (8/26/2008)
Sounds like the beginning to a joke...
Incidentally, I would like to note my interest in hummers as well.
I know I know, grow up...
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Corey L 3:13PM (8/26/2008)
I, too, am a fan of hummers.
/yes, I'm immature
Soccer Mom 2:53PM (8/26/2008)
Hummer symbolizes everything that is wrong with N.American auto industry.
Huge and heavy, but tiny interior. Thirsty, but can transport less than your regular minivan pickup could. Expensive, but with cheap-looking Tonka-car-quality interior. There are no redeeming qualities in Hummer. Off-road? Jeep is by far better choice - half the size and weight, but the same interior space and perhaps better capabilities. Equip it with a single-digit MPG underpowered 12 cylinder engine and dump it on those who has oil.
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MajorGeek 3:16PM (8/26/2008)
LOL, you and Vintage every Hummer thread, both misinformed. I have to assume your talking H2, otherwise its not worth replying to you. Ill take it one at a time and move on since people don't listen to facts or owners, only preconceived perceptions.
1: Huge and heavy, yup. Tiny in rear storage ill agree, driving it is roomy and like being at home on your leather couch. Awesome.
2: Tonka interior was the goal since Tonka trucks were supposed to be large and durable. That said, check into an 08 or newer, its more like an Escalade now. You could go to the Hummer page and see for yourself.
3: I would not say Jeep is better off road, they each are capable, however at half the height and weight, the Wrangler gets 16 MPG, not a lot more then double the weight H2 at 12-13 MPG.
4: I don't get the 12 cylinder comment, I will assume you were trying to be funny. Not sure it worked.
If you have seen what Chevy, Dodge and Ford are all doing to downsize and make fuel efficient cars to plug ins, like the Volt, you would not have made your first comment. Frankly Toyota went ahead and released that monster Sequoia this year regardless, so they deserve the same criticism. Other car companies continue with full size releases. Someone is buying them.
This isnt whats wrong with car manufacturers, its whats wrong with finicky consumers. They all had to have that stupid ass SUV or minivan, then gas went up a buck a gallon, housing market falls out and everyone is trading out of their monsters. All within a year. Well, some of us were prepared for it, of course, we go to those bank places and save money and even earn interest! Its pretty cool, its like paying 12% on a maxxed out multiple credit cards, car loans or even a mortage, only the bank PAYS you to hold your money. Killer concept.
michael pettibone 5:16PM (8/26/2008)
Actually Hummer is Sterling-you know that crap brand that died about 12 years ago? It would be cool if Tata bought it and made a H-9 on the nano chasis.Could work in the middle east-no one could see your woman through those little slit windows if she accidently revealed part of her face or something.
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RLQ 5:55PM (8/26/2008)
ME countries are still in love w/ the H2.
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Zane 7:30PM (8/26/2008)
I'm actually headed to the UAE next month for a 6 month project. Guess I'll end up renting a H3/2 anyway.
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j_diesel 7:41PM (8/26/2008)
last time GM unloaded an on-road brand it killed olds. if they sell hummer it's totally gone. i used to think dumping olds was wrong (i loved the direction the designs were going) but at least if you dump your dead in the corporate graveyard you can use your magical rebirth powers to bring it back should the need arise. if you sell it to someone else it is completely gone. like electro-motive division and allison.
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Richard S. 12:16PM (8/27/2008)
It could make sense for an UAE company (Abu Dabhi or Dubai) to buy Hummer. First of all, they would move the assembly line to their nation. They would hire Pakistanis, Indians and Filipinos for a fraction of the cost of a UAW assembly worker. The "New Hummer" would work in a no tax and no regulations environment in this desert sheikhdoms. For engineering resources they will just hire the best European, American and Asian houses there is while hiring the best Italian, French or whatever designers to refine the interior and exterior.
Perhaps it will not sell in great numbers in places where gas costs $8/gallon but in the Persian Gulf, these new Hummers could steal sales from GMCs, Land Cruisers, G-wagens, Land Rovers, etc...
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