Officially Official: General Motors reaches tentative agreement to sell Hummer
Hummer HX Concept - Click above for a high-res image gallery
As expected, General Motors has announced it's entered "into a memorandum of understanding with a buyer for Hummer," but under the terms of the transaction, the purchaser hasn't been disclosed.
GM's brief release (posted after the break) scratches the surface of the plan, saying only that the deal is expected to close by the third quarter of this year, that the new investor is committed to funding future Hummer products – possibly including the H4 and a two-door H3T – and that 3,000 U.S. manufacturing, engineering and dealer jobs will be saved.
Those last two points caught the eye of PickupTrucks.com, which tapped one of its sources within GM to ask how manufacturing and dealer jobs have escaped the axe. On the manufacturing front, the H3 production facility in South Africa (which makes right-hand drive models for markets outside the States) will be shuttered and assembly will move back to the U.S. Additionally, the memorandum of understanding states that no Hummer dealers in the U.S. will closed.
Gallery: Detroit 2008: HUMMER HX Concept
[Sources: GM, PickupTrucks]
PRESS RELEASE
GENERAL MOTORS ANNOUNCES PRELIMINARY AGREEMENT TO SELL HUMMER
Deal could secure more than 3,000 jobs in the United States; preserves HUMMER as global off-road brand
DETROIT, June 2, 2009 – General Motors Corp. (NYSE: 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.
"HUMMER is a strong brand," said Troy Clarke, President of GM North America. "I'm confident that HUMMER will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker."
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.
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Reader Comments (Page 1 of 3)
summazooma 7:15AM (6/02/2009)
Yeah, this is the way to sell something,... post meaningless messages on a site that might be read by either, A) people who don't matter/won't be potential customers for your particular product or service, or, B) by dumb luck, by people who could very well be potential customers but are severely unimpressed by the amateurish & unsophisticated way your company "does business"...
I hope your post disappears...
On to the issue at hand:
I find it interesting that manufacturing (at least in the short-term) stays in (returns to) the U.S.; Wouldn't surprise me if it moved offshore at some point, if only as the primary source for global product.
Could this be Isuzu? They left the U.S. market but, frankly, still have some presence (Thailand, for one) & aspirations in other markets, were involved in the development of the platform upon which H3 was based and are even familiar with Shreveport (i280/370, Hombre assembly). Not likely, I know, but would be interesting...
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Jim 7:18AM (6/02/2009)
looks interesting but still don't see the potential buyers profile
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Teh Lup 7:24AM (6/02/2009)
Penske is rumored to buy Saturn.
There was some interest in Pontiac but GM is refusing to release the 'brand'
Our tax dollars at work.
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Tourian 9:25AM (6/02/2009)
And what does that have to do with this story?
Teh Lup 12:12PM (6/02/2009)
What does you being a cool-guy on autoblog have to do with my comment?
I'm simply referring to the other brands that could live a much better and longer life in other company's hands. As with Hummer - which Chevy went violently wrong with.
But Im sorry if what I said didn't lead into the same line.
JRM 7:32AM (6/02/2009)
Isuzu is alive and well as one of the largest commercial truck manufacturers in Japan.
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spalind 7:33AM (6/02/2009)
Saving American jobs, dealers, and shuttering is S.A. plant?? My nose smells an American buyer of some sort...can't imagine a Tata or a Mid-East buyer doing that...
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Tourian 9:26AM (6/02/2009)
That could have been a condition of the sale, no matter who the buyer was.
spalind 9:29AM (6/02/2009)
Is GM really in a position with Hummer to be demanding conditions of a potential buyer?? No...
Tourian 11:12AM (6/02/2009)
The U.S. Government, who is backing GM at the moment, has the power to make a lot of demands.
Polarstar 7:39AM (6/02/2009)
I really like that HX concept and would definitely think about buying it if it's ever produced.
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sparrk 11:08AM (6/02/2009)
i would buy an HX too and i'm European . i think it would be a great alternative to Wrangler , Land Rover and G-class convertible if they keep the price reasonable and put at least a diesel engine in it.
Evan 7:50AM (6/02/2009)
If GM's spin-offs keep manufacturing vehicles, nothing really changes - they'll still be more vehicles being manufactured in GM plants than there are customers to buy the things!
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tankd0g 8:21AM (6/02/2009)
They'll have to form some sort of consortium, perhaps call it "Generic Motors", then they'll have the collective lobbying power to get a bailout from the US government!
versionII 8:02AM (6/02/2009)
Probably a third tier manufacturer, Isuzu, Suzuki or an Indian/Chinese firm.
Wouldn't surprise me if Fiat bought it and combined it w./ Jeep. Unlikely but possible.
But America is a BRAND NAME society, if there's still a market for the name Circuit City, there's definitely a market selling the name "HUMMER"
Either way, kiss your tax money goodbye.
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tankd0g 8:20AM (6/02/2009)
The fact that they won't release the name of the buyer makes me think it's someone embarrassing.
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Rick C. 10:23AM (6/02/2009)
Ralph Nader.
Judy Zik 2:30PM (6/02/2009)
My thoughts exactly. Would be a bit unsightly in the current climate to find out the US government is selling off parts of GM to the Chinese. Obviously whoever it is doesn't currently have a presence in the American market since no dealerships are closing. If it was an American company you would think they would want to splash this all over the news as good news which leads me to believe this is not the kind of buyer Hummer fans have been hoping for.
tekd 8:28AM (6/02/2009)
I think it's just not disclosed because it's not finalized since a memorandum of understanding doesn't really mean much more than that they're mutually in agreement that they're considering a sale/purchase. And they don't want the stock price of their company to go bouncing like crazy because it's revealed that they're thinking about buying Hummer.
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Throwback 8:29AM (6/02/2009)
Everything I have read indicates it is not a mainstream manufacturer. A Private Equity company perhaps, those fools all seem to think they can run a car company.
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