Following yesterday's bankruptcy announcement, GM has announced that the automaker has entered "into a memorandum of understanding (MoU) with a buyer for Hummer."
GM stopped short of revealing who the buyer is, but stated that the sale is expected to close by the end of the third quarter this year. GM also stated that the buyer is committed to aggressively funding future HUMMER vehicles, hopefully like the H3T and that 3,000 jobs are now secure.
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.
Comments (38)
Thats actually a pretty sweet looking hummer up there.
Anyway, Hummer has to find a way of surviving with lower sales numbers. Plain and simple, its time is up in the general marketplace and will have to rest it laurels in the specialized market.
Posted by Sandman | June 2, 2009 11:11 AM
Posted on June 2, 2009 11:11
According to autoblog. com, HUMMER was reportedly purchased by a Chinese heavy equipment manufacturer.
Question: If Hummer's new buyer is Chinese, will that dent its flag-waving brand image in America?
Posted by Bradford | June 2, 2009 11:23 AM
Posted on June 2, 2009 11:23
According to autoblog. com, HUMMER was reportedly purchased by a Chinese heavy equipment manufacturer.
Question: If Hummer's new buyer is Chinese, will that dent its flag-waving brand image in America?
Posted by Bradford | June 2, 2009 11:24 AM
Posted on June 2, 2009 11:24
all your hummer are belong to us
Posted by Sichaun TengZhong | June 2, 2009 1:43 PM
Posted on June 2, 2009 13:43
Now when the gas tanks fall off while driving down the road we can blame chinese quality control instead of GM.
Posted by Patrick | June 2, 2009 2:33 PM
Posted on June 2, 2009 14:33
@Bradford:
Get a new computer!
There are already full knock off H2's driving around China so why would they need the real ones?
Posted by Gary | June 2, 2009 4:17 PM
Posted on June 2, 2009 16:17
@ Gary
It's just because the Chinese have so much money (and our debt) that they need to start buying stuff up.
China wins the Monopoly game.
Posted by Noya | June 2, 2009 4:41 PM
Posted on June 2, 2009 16:41
Not as long as we remain the worlds only super power.
Posted by RX-7 Guy | June 2, 2009 5:22 PM
Posted on June 2, 2009 17:22
and north korea is the worlds other super power
Posted by hummmmmmmm | June 2, 2009 5:44 PM
Posted on June 2, 2009 17:44
Ughhh. A knockoff of an H2? Really Gary? I never heard that one. Not surprising though.
The real H2 and H3's were bad knockoffs of a real Hummer as it is. And i seriously doubt you can damage that "flag-waving" brand image anymore than it already is. The underpowered, Colorado based, plastic clad H3 finally did it for me.
All kidding aside, it's good to hear that people will still have jobs building these for a while.
Hey GM! While China still has their checkbook out, sell them Buick too since they love the brand so much.
Posted by Trooper Bri | June 2, 2009 6:55 PM
Posted on June 2, 2009 18:55
hey GM give them Saturn too so they can keep making the "sky"
Posted by mickk | June 3, 2009 6:46 AM
Posted on June 3, 2009 06:46
Just another example of selling the US out.
Posted by stromm sarnac | June 3, 2009 7:13 AM
Posted on June 3, 2009 07:13
I WANT THE H1 BACK!!!
Posted by 426Hemi | June 3, 2009 3:01 PM
Posted on June 3, 2009 15:01
@ RX-7 Guy
That's debatable since Russia and China both have ICBMs. Our only real advantage is our Navy carriers, and they can be taken out fairly easy. Just like the F-22, counter measures are much cheaper than it's $150 million price tag.
Posted by Noya | June 3, 2009 8:01 PM
Posted on June 3, 2009 20:01
@Noya
Easy to take out how?
Posted by 426Hemi | June 3, 2009 8:54 PM
Posted on June 3, 2009 20:54
anyone else love that GM went broke, and is trying to get money for giving (a) hummer?
Posted by Akkadain | June 4, 2009 5:50 AM
Posted on June 4, 2009 05:50
That's a damn nice Hummer! I'd get one in a heart beat if they made it!
Posted by Rick Wag | June 4, 2009 6:19 AM
Posted on June 4, 2009 06:19
The thing I would like to know is when GM sales Hummer to this Chinese company what exactly to they get?
Do they get everything, like the plans to make the motor, transmission, computer system, Onstar?
Or do they just get the proprietary Hummer stuff like the, Brand Name & Hummer design?
Posted by Think | June 4, 2009 6:44 AM
Posted on June 4, 2009 06:44
waiting for BYD to make a battery powered version.....
Posted by cereal box | June 4, 2009 8:26 AM
Posted on June 4, 2009 08:26
That Hummer looks a lot like an Toyota FJ Cruiser.
Posted by FJ | June 4, 2009 8:34 AM
Posted on June 4, 2009 08:34
@426 Hemi:
The H1 is made by AM General anyway, so there will be plenty still produced. You'll just need to convert it to civilian usage.
Posted by FJ | June 4, 2009 8:36 AM
Posted on June 4, 2009 08:36
Wow, you guys sound like a bunch of racist idiotic Americans. Heh, typical mentality, though, from a bunch of egocentric people with hardly any understanding of foreigners. You guys know nothing about the Chinese mindset and their "inferiority complex," which stems from a century of Western hostility in East Asia. The perceived idea of China = "low quality" is due to American consumerism, not China itself. Take Walmart, for example. Just look at the near-monopolization of Walmart and it paints a clear example of what Americans want: cheap, cheap, cheap. And that's what the Chinese have fed us for decades. They're not stupid; they're just catering to our "wants" in the quickest, most efficient way possible for them...and now they've gotten used to it.
As I've mentioned before, due to this "inferiority complex," the Chinese will NOT take an established Western name/make/brand and screw it over. Tupperware is one thing...cars is another, especially concerning the negative repercussions of automotive recalls and lawsuits. Take, for example, the Lenovo acquisition of IBM's ThinkPad. Oooooooooh geezers dem Chinamen gone 'n screw up mah ThinkPad laptup. Or, er...not. And don't argue with me about how "Chinese-made cars" perform poorly in Europe's crash tests. Yes, those are Chinese BRANDS engineered by CHINESE people in a country whose automotive industry is still in its INFANTILE/JUVENILE STAGES. Most likely the car you're driving right now has at least one part manufactured/assembled in China.
Centuries of Confucious influence in China means that they could(n't) care less about their own people (socialistic ideology...waaay before Mao Zedong) but they do care about how the rest of the wold views them. Believe it or not, China is gradually changing...the country has been improving in all corners of society for decades now so you'd best open your eyes and get your heads out of your smug asses.
Most likely the Chinese company that purchases Hummer will just throw cash at it and utilize some of it's technology for their own means, while still selling the Hummer brand.
I laugh (and kind of cry to myself) at how America's society is essentially reverting itself, while the rest of the world gradually treks forward. We don't have the world's tallest tower (male complex, it seems), we aren't the richest nation per capita, the USD is growing ever-weaker, we're not the most technologically advanced nation (waaay behind on this), our healthcare system is waaay behind Europe's, we no longer have the world's largest automaker, our public transportation system is stuck in the '70s, and the list goes on...
Posted by lotsofTRidiots | June 4, 2009 11:47 AM
Posted on June 4, 2009 11:47
To: lotsofTRidiots:
Europe can keep their socialist health care system. I and many others do not want it... Are system is far from perfect & does need major improvement, but a govt funded health care system is the wrong way to go. Pay for your health care yourself & quick depending on the working to pay for it...
Public transportation: Keep your public funded shit, stay out of my pocket, pay for you shit yourself & get your own private transportation...
Posted by Think | June 4, 2009 1:44 PM
Posted on June 4, 2009 13:44
@Think:
"Are system is far from perfect..."
Yeah, and screw that socialist, public funded educational system cuz we can sure learn real good on our owns.
Posted by Jed | June 4, 2009 2:11 PM
Posted on June 4, 2009 14:11
Oh, you mean the public education system that costs MORE than private education, yet provides a worthless "education" to its high school graduates?
And nationalized healthcare being better than what we have now? Are you kidding? It doesn't work that well in Europe, and it would be a complete failure here. And we don't even have to wonder how well it would work here....we already have a government provided healthcare system. It's called the Veteran's Administration, and it sucks.
Posted by JB | June 4, 2009 2:49 PM
Posted on June 4, 2009 14:49
@ 426Hemi
While in all honesty, Nimitz class counter measures are the best in any navy (Phalanx CIWS, RAM, flare/chaff, SSTDS / AN/SLQ-25 Nixie anti-torpedo systems and of course F-18 superhornets) a full squadron or two of enemy aircraft could penetrate the battlegroup and fire off a salvo of anti-ship missles. Include a couple of enemy attack subs with torpedoes and sub launched cruise missiles and you're definitely going to sink a carrier (while starting a war).
While the carriers short range defensive systems (and the battle groups- destroys, frigates, attack subs) could take out several of the incoming missiles and torpedoes, several are bound to slip through as no defensive system has a 100% success rate (the best are in the 70-80% range).
Of course the only non-Western countries that have the military power to do this are Russia and China.
Posted by Noya | June 4, 2009 3:46 PM
Posted on June 4, 2009 15:46
I love how this column morphed into multiple things, but few about Hummer. I wonder if they'd give this thing a moderate two rating.
I like that prototype at the top, sure it's not going to sell a million units, but it sure would be a fun option for certain regions....better looking than the FJ or Wrangler in my opinion. Oh well, since Obama Motors will probably just produce boring junk for all the lazy people with hands in my pocket I suppose it's great someone else is getting this brand.
Posted by thetruth | June 4, 2009 4:32 PM
Posted on June 4, 2009 16:32
While i do have to agree with TRIdiots on several points, take a closer look at China.
Their expanding industrial force is coming at great expense to their environment and quality of life. When exactly do you see that changing? Remember the benzene spill in 2005? An 80km long hazard that even sent Russia scrambling. Hell, just Google "chemical spill, China" and see what doesn't make the public news.
Also, while we have become more dependent on Chinese imported goods, they are also at our mercy. If we cut back on selling them raw materials, they would have some serious issues. I for one don't buy pressboard furniture and cheap wheel bearings.
There are plenty of countries in the world that aren't as dependent on China nearly as much as we are. That can easily be reversed in 10 years or less if our government would simply create incentives to companies to come here and stay here. America would quit thinking cheap. I agree, Wal-Mart mentality is poison, and our fault.
I've said it plenty of times. I'll pay 10 bucks more for shoes, 100 bucks more for a TV, and a 1000 bucks more for a car if it means my neighbors have a job.
Posted by Trooper Bri | June 4, 2009 4:58 PM
Posted on June 4, 2009 16:58
I'd sooner go without a car or buy Chinese than support the UAW.
Posted by jde | June 5, 2009 12:56 AM
Posted on June 5, 2009 00:56
@ Trooper
You're right with China, while they deserve credit for progress in some areas, they're making horrible decisions in others. In general I've found most countries that are better in one respect (to the US) are worse in others, exceptions being countries such as Switzerland that seem to really run things pretty well, but have limited populations and practices that probably won't work for much larger nations.
Back to the Hummer, I hope this Chinese company can put a good powertrain in these things, maybe bring a nice diesel to the smaller models. If there's any paradigm change I'd like forced into the US it's acceptance of diesel.
Posted by thetruth | June 5, 2009 5:22 AM
Posted on June 5, 2009 05:22
UAW = parasite on domestic automakers that will bleed them dry through good times and bad. When they've bled the companies dry, the politicians they've bought will feed them blood from the veins of taxpayers.
Posted by raid | June 5, 2009 11:17 AM
Posted on June 5, 2009 11:17
@Noya
" ...no defensive system has a 100% success rate... "
Yes but no attack has a 100% success rate either. And with an attack force like that, something's going to show on radar.
So, what about the F/A 22 and F/A 35.
Posted by 426Hemi | June 5, 2009 3:07 PM
Posted on June 5, 2009 15:07
Just sell the whole company (GM) to the China. They will soon own us anyways.
Posted by Peter | June 7, 2009 3:48 PM
Posted on June 7, 2009 15:48
Trooper, you can't "force" anything on the general public here since we're in a free market economy. California tried to FORCE people to buy electric cars several years ago, and you see how dumb that made them look.
Yes, more diesels would be good here, but there has to be demand for it.
Posted by J B | June 8, 2009 11:49 AM
Posted on June 8, 2009 11:49
Trooper, you can't "force" anything on the general public here since we're in a free market economy. California tried to FORCE people to buy electric cars several years ago, and you see how dumb that made them look.
Yes, more diesels would be good here, but there has to be demand for it.
Posted by J B | June 8, 2009 11:50 AM
Posted on June 8, 2009 11:50
@ Jed
"Yeah, and screw that socialist, public funded educational system cuz we can sure learn real good on our owns."
lol. You fucking retard. The public education system in the US is government run. You just made his point for him.
Posted by Sandman | June 23, 2009 7:17 AM
Posted on June 23, 2009 07:17
@ Jed
"Yeah, and screw that socialist, public funded educational system cuz we can sure learn real good on our owns."
lol. You focking retard. The public education system in the US is government run. You just made his point for him.
Posted by Sandman | June 23, 2009 7:21 AM
Posted on June 23, 2009 07:21
I just saw "Transformers" and it was a great 2 1/2 hour add for GM. However, it was really a great slam against Obama who was President in the movie. I guess GM gets the last laugh.
I guess the Chinese get the Tahoe and Colorado too since that's what Hummers are made out of.
Posted by General Hummer | June 24, 2009 10:55 PM
Posted on June 24, 2009 22:55