GM announces that Hummer sale can not be concluded. Brand will be wound down
02-24-10 | 12:54 PM
#1
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From: Waiting for next track day
GM announces that Hummer sale can not be concluded. Brand will be wound down
Although it has been evident for some time that General Motors' sale of its Hummer brand to Sichuan Tengzhong Heavy Industrial Machines Co., Ltd., we didn't expect for word to come down today that the negotiations are dead and the brand will be wound down. Unfortunately, judging by a press release just issued by GM, that's exactly what will be happening. According to John Smith, GM's vice president of corporate planning and alliances,
"One year ago, General Motors announced that we were going to divest Hummer, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for Hummer along the way, and we are disappointed that the deal with Tengzhong could not be completed."
As we learned from the Saab sale saga, GM announcing that the brand will be wound down does not completely extinguish hope for another buyer to slip in in the 11th hour, but it does seem highly improbable that a new party will pick up where the negotiations with China's Tengzhong left off.
In the statement available after the jump, GM does not specify what killed the planned sale of the brand, but rumors in recent months suggested that the Chinese government was not keen to sign off on the deal. At the moment, it is unclear what will happen to Hummer's H2 and H3/H3T models, but it is likely that the tooling and manufacturing rights will be sold off to other companies. It is also unclear how many employees will be out of work as a result of the closure.
As with the wind-down of its Saturn and Pontiac brands, GM has pledged to honor Hummer warranties and continue to supply service and parts.
http://www.autoblog.com/2010/02/24/h...ong-wind-down/
"One year ago, General Motors announced that we were going to divest Hummer, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for Hummer along the way, and we are disappointed that the deal with Tengzhong could not be completed."
As we learned from the Saab sale saga, GM announcing that the brand will be wound down does not completely extinguish hope for another buyer to slip in in the 11th hour, but it does seem highly improbable that a new party will pick up where the negotiations with China's Tengzhong left off.
In the statement available after the jump, GM does not specify what killed the planned sale of the brand, but rumors in recent months suggested that the Chinese government was not keen to sign off on the deal. At the moment, it is unclear what will happen to Hummer's H2 and H3/H3T models, but it is likely that the tooling and manufacturing rights will be sold off to other companies. It is also unclear how many employees will be out of work as a result of the closure.
As with the wind-down of its Saturn and Pontiac brands, GM has pledged to honor Hummer warranties and continue to supply service and parts.
http://www.autoblog.com/2010/02/24/h...ong-wind-down/
02-24-10 | 02:15 PM
#2
With upcoming CAFE standards, Hummer as a brand will be nothing but a burden and liability in the U.S.
Perhaps a different market can take advantage of Hummer as an import, but the American brand outside of America is rather deplorable. It really has nowhere to go (other than the military) to save its face...
Perhaps a different market can take advantage of Hummer as an import, but the American brand outside of America is rather deplorable. It really has nowhere to go (other than the military) to save its face...
.
02-24-10 | 04:05 PM
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From: MI
I guess GM was thinking they could build Hummer into another Jeep with international appeal. I wonder what dealers are going to do with those hideous psuedo-quonset hut buildings? My Cadillac dealer was also a Hummer dealer with one of those buildings. They moved the used car operation into it and it looks really out-of-place.
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02-24-10 | 05:38 PM
#10
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From: MIchigan
[QUOTE=PhilipMSPT;5258455]With upcoming CAFE standards, Hummer as a brand will be nothing but a burden and liability in the U.S.
QUOTE]
I believe H2 Hummer is excluded from the CAFE standards because of GVWR standards.
QUOTE]
I believe H2 Hummer is excluded from the CAFE standards because of GVWR standards.
02-24-10 | 06:31 PM
#12
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From: QC/FRANCE
The last nail into Hummer's coffin
General Motors' deal to sell its Hummer brand to a Chinese automaker fell through Wednesday and the company said it now plans to shut down the brand.
GM did not give any details about why the agreement to sell Hummer to Sichuan Tengzhong Heavy Industrial Machines Co. Ltd. could not be completed, saying only that it was disappointed it was unable to close the deal.
The large SUV brand is based on the Humvee military vehicle. It was always a niche vehicle but its image and sales were hit particularly hard by rising gasoline prices earlier this decade. Last year, GM only sold 9,046 Hummers, down 67% from 2008.
Hummer is the third brand that GM is being forced to shut down as part of its bankruptcy reorganization last year. A deal to sell Saturn fell through and GM is also closing the Pontiac brand, which it never attempted to sell.
Chinese automakers have shown interest in buying established western brands as companies there strive to become more global players. Geely is in the process of buying the Volvo brand from Ford Motor (F, Fortune 500) and Beijing Automotive Industry Holdings Co. bought the rights and technology to build some Saab models in China from GM.
GM did not give any details about why the agreement to sell Hummer to Sichuan Tengzhong Heavy Industrial Machines Co. Ltd. could not be completed, saying only that it was disappointed it was unable to close the deal.
The large SUV brand is based on the Humvee military vehicle. It was always a niche vehicle but its image and sales were hit particularly hard by rising gasoline prices earlier this decade. Last year, GM only sold 9,046 Hummers, down 67% from 2008.
Hummer is the third brand that GM is being forced to shut down as part of its bankruptcy reorganization last year. A deal to sell Saturn fell through and GM is also closing the Pontiac brand, which it never attempted to sell.
Chinese automakers have shown interest in buying established western brands as companies there strive to become more global players. Geely is in the process of buying the Volvo brand from Ford Motor (F, Fortune 500) and Beijing Automotive Industry Holdings Co. bought the rights and technology to build some Saab models in China from GM.
YAY no more Matchbox toys on the road!
02-24-10 | 08:56 PM
#15
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From: MD