REPORT: GM has three possible offers for Hummer between $100-$200M; SAIC may buy Buick
The Hummer fire-sale has been ongoing, but a brutal economy and non-existent credit markets have made a sale even less probable. Reuters is reporting that GM has than three bidders for the Sierra Club's symbol of excess, with one potential buyer from the U.S. and two others overseas. The price of Hummer is reportedly somewhere between $100-$200 million in cash, plus assurances that the buyer will pump money into engineering, sales and marketing. Whichever firm takes the reigns would also take over responsibility for Hummer's 125 dealers. GM would in turn continue to build the H3 at its Shreveport plant, and turn over future plans for the brand.
A separate report from China Business News states that GM's partner in China, Shanghai Automotive Industry Corp. (SAIC), is looking to purchase Buick outright. The report values the Buick brand at $1 billion, mainly due to its popularity in the Land of the Great Wall. We're more skeptical about this report, however, because it's short on details and just quotes "sources." GM has also never said it would consider selling Buick. The brand is also one of the most popular marques in China, making a sale, unless the price was right, seem like a bad idea.
[Sources: Reuters, China Knowledge]
Reader Comments (Page 1 of 3)
the_MVP_X 10:45AM (4/09/2009)
Don't sell Buick, it has potential and it's legend.
Reply
Alex 11:15AM (4/09/2009)
Legend means absolutely nothing when you are faced with bankruptcy. Any car company that is over 100 years old like Buick is going to have a huge history behind it but that doesn't mean it should be saved for the sake of past successes.
If Buick is making a profit and is projected to continue to make a profit, then keep it. Otherwise...
That being said, i think the new Lacrosse is a real looker.
Sektor 11:34AM (4/09/2009)
Where is that idiot Antbee saying I was spreading "misinformation"?
Buick is dead in the US, so why don't just sell it?
hypermiler 11:44AM (4/09/2009)
@ Sektor
> Buick is dead in the US, so why don't just sell it?
Because Buick's GM's meal ticket post-bankruptcy. Buick-less GM is less viable than New GM with a large market share in China.
SAIC's bid on Buick is real.
Sektor 12:04PM (4/09/2009)
@IHC:
We'll have to see what happens. This kind of reminds me of Chery's bid on Volvo. They offered $3 billion and Ford refused. Now they'll probably sell it for half the money.
I don't think there is much hope for GM post bankruptcy to keep the Buick brand.
the_MVP_X 12:35PM (4/09/2009)
Nope Volvo worth at least 7-9 billion.
Jei 1:23PM (4/09/2009)
Regardless of legend, consider its relevancy. GM should hold on the Buick if only to sell them in China and in other markets except N.A. And if GM does keep Buick, they should not make them in the US any longer unless to meet demand for oversees markets.
Buick should be not a core GM brand. It should operate as a subsidiary with its base in China. Should be looked at in the same business model Holden has been.
TruthBringer 10:23PM (4/09/2009)
If they sell, I hope it is to a non-Chinese car company. I do not want a lot of future cars to come with a Made in China sticker.
Avinash machado 10:46AM (4/09/2009)
Hope they never sell Buick. It is an historic brand, in fact the oldest surviving American auto brand in GM's portfolio.
Reply
BoxerFanatic 10:51AM (4/09/2009)
Only because they CANNED Oldsmobile.
Nothing is sacred to these folks... Otherwise they would have handled their business better.
But I would be sad to see american brands go to chinese companies. (it has nothing to do with chinese people, everything to do with chinese government)
I wasn't happy when MG/Rover went there, either, and MG hasn't been present in the US market since 1981 or something.
Avinash machado 10:58AM (4/09/2009)
True. Oldsmobile was the oldest survivor. It was founded in the 1890's and was the first to do assembly line production. GM killed it despite its heritage. I hope they won't get rid of Buick either.
Luis 11:02AM (4/09/2009)
Sentimentality should not be used to save Buick. If it's losing money and doesn't "fit" in in the US, then they should not sell them here. GM is a business.
Yikes 11:11AM (4/09/2009)
Once GM killed Oldsmobile for the sake of the upstarts Saturn and Hummer, I knew management was clueless.
Polly Prissy Pants 11:24AM (4/09/2009)
"Sentimentality should not be used to save Buick. If it's losing money and doesn't "fit" in in the US, then they should not sell them here. GM is a business."
Or maybe make Buick better which they certainly are. Unfortunately it's this mentality that epitomizes a lot of what's wrong in the world today. All these kids coming out of B school being taught that history, tradition and legacy mean nothing, that it's all about short term dollars and cents. How sad.
Alex 11:24AM (4/09/2009)
@Yikes:
Why? If i was GM at that time I would have made the same decision. Cadillac, Buick and Oldsmobile were all under the same umbrella and essentially their own competition. GM was making three cars to appeal to one person. Meanwhile there was Saturn, a company that was planned to compete with the Japanese economy cars and HUMMER, which was growing into a very formidable challenger to Jeep which was a company that existed for decades with no real competition.
hypermiler 11:46AM (4/09/2009)
@ Avinash machado
> Nothing is sacred to these folks... Otherwise they would have handled their business better.
Buick is GM's premier brand in the world's biggest auto market, China. Selling Buick is like giving up GM's future.
Luis 11:53AM (4/09/2009)
Polly Prissy Pants: That's the problem with GM - they are a business and not being run properly. If something is losing money first try to fix it (they tried) and if that doesn't work end it. It's time to end it.
Mazda FTW! 10:49AM (4/09/2009)
The Buick brandname is huge in China. In North America it has excellent reliability brand-perception and with products like the Lucerne, Enclave & the upcoming Lacrosse, GM should NOT sell Buick. Chevrolet, GMC & Buick have to remain.
Reply
the_MVP_X 10:52AM (4/09/2009)
Chevy, Caddy, GMC and Buick - wow that's a small GM.
Alex 11:27AM (4/09/2009)
I still don't understand why GMC needs to stay. They are rebadged Chevrolet trucks and SUVs. If GMC went away i think it would be the natural move for any owner to go to Chevy for their next truck or SUV.