Somebody has come along and bought the Hummer brand (likely for a song). The only thing is, we don't know who the mystery buyer is or how much they've paid for it.
GM has announced that it has found a buyer for its Hummer brand, builder of colossal SUVs, which had been a dead weight on the now bankrupt GM for a long time.
Under the terms of the deal, according to a GM press release, GM will continue to build Hummer vehicles under contract to the new owners of the brand. The Chapter 11 automaker says its plant in Shreveport, Louisiana will continue to assemble the H3 and H3T models until at least 2010. That means just through next year, of course.
The deal will keep alive about 3,000 jobs dependent on Hummer both at GM and at the brand's retail outlets.
GM says it expects to close the deal by the end of the third quarter of this year. Under the terms of the agreement, the identity of the buyer nor the details of the sale can yet be publicly released.
It's hard to guess at who the new owners are. Anyone could have traded in an old 1984 Dodge Omni and bought either Hummer or Saturn from GM these days.
What to say? Hey, new mystery buyer, good luck with that.
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 - 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.
About GM - General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.
Bristol411S3
June 2, 2009 4:50 PM
