• Jun 2, 2009
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.



[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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  • 32 Comments
      • 5 Years Ago
      Sounds like it might be a Chinese buyer...

      http://www.nytimes.com/2009/06/03/business/03auto.html?hp
      • 5 Years Ago
      I love the HX. If it's small enough I'd consider one for my next truck. I am using the bed of my truck less and less these days (still quite a bit, but nothing a trailer couldn't handle). It'd be extra sweet if it was 4 cyl diesel, priced in the low to mid-20s, and the back was fully removable w/ the ability to take the seats out (or keep them in!).

      Depending of who buys Hummer would also sway my decision.
      • 5 Years Ago
      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.
      • 5 Years Ago
      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.
      • 5 Years Ago
      Hummer wouldn't be a "dying brand" if they actually offered vehicles people wanted! The H1, H2, and H3 are all too big and too expensive and too light-duty. I mean, independent front suspension on an off-road vehicle? Give me a break!

      They need to follow Jeep and Suzuki's lead: small, maneuverable, tough, solid-axle 4x4's that are affordable and efficient. Following their downsizing progression, an H4 and H5 would be the right vehicles for today's market, with a small turbodiesel and a manual transmission optional, if not standard equipment.

      Hopefully whomever winds up in control of the Hummer brand makes these important changes or else the brand will have no future.
      • 5 Years Ago
      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...
        • 5 Years Ago
        That could have been a condition of the sale, no matter who the buyer was.
        • 5 Years Ago
        Is GM really in a position with Hummer to be demanding conditions of a potential buyer?? No...
      • 5 Years Ago
      Isuzu is alive and well as one of the largest commercial truck manufacturers in Japan.
      • 5 Years Ago
      I wish they had not used a pic of the HX concept, it kind of gets my hopes up.
      • 5 Years Ago
      Sounds like this guy has some deep pockets....
      • 5 Years Ago
      I really like that HX concept and would definitely think about buying it if it's ever produced.
        • 5 Years Ago
        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.
      • 5 Years Ago
      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...
      • 5 Years Ago
      "but under the terms of the transaction, the purchaser hasn't been disclosed."

      It's probably an interest from either China or the Middle East that doesn't want to create a political firestorm (think Dubai port deal). I don't know if GM's Hummer still makes vehicles for the US Military, but the perception would be bad.
        • 5 Years Ago
        Or maybe they're simply embarrassed. I know I wouldn't want to admit it, if it were me LOL
        • 5 Years Ago
        I may be wrong on this, but i don't think GM ever built HMMWVs for the military, those are built by AM General.

        Regardless your theory still stands, people would be freaking out if they (incorrectly) thought that US military HMMWVs were being built by a Chinese or Middle Eastern company.
        • 5 Years Ago
        GM does not make Hummers for the Military. GM only makes civilian Hummers. The HUMVEE is still made by AM General.
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