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Bankrupt GM Dumps the Hummer

Written By Brian Hicks

Posted June 2, 2009





H1, H2, or H3, I can’t say that the Hummer brand ever did much for me.

Too big……too boxy…..and way too much money for my tastes

Even still, they sold far more of the brutes than I ever would have imagined in what was the greatest consumption bubble of all time.  A bling-mobile, really, and not much more.

Where exactly it fit into General Motors, I’m still not sure.

Apparently neither was GM. One year after first discussing the topic, the iconic Hummer brand is about to be sold.

From Reuters entitled: GM in deal to sell Hummer, but won’t say to whom

“General Motors Corp said it had reached a preliminary deal to sell its Hummer brand, part of its effort to shed half of its eight U.S. lines and leave bankruptcy court protection as a leaner company.

GM, one day after filing for bankruptcy, said in a statement on Tuesday that it was not disclosing the buyer or the value of the deal under the terms of the agreement.

The buyer is “serious,” Chief Executive Fritz Henderson said on CNBC, and he expects details of the transaction to become public “in the relatively near term.”

The Hummer sale comes a year after GM started searching for a buyer for the all-SUV line more emblematic of stronger economic times, when the cost of gasoline was not much of an issue.

The automaker is also in the process of selling its Saab and Saturn brands by the end of 2009, and plans to discontinue Pontiac by the end of 2010. GM has said it will focus on the Chevrolet, Cadillac, GMC and Buick brands, which make up more than 80 percent of current sales.

In bankruptcy, GM will be divided in two: a “New GM” made of its best assets and “Old GM,” which will include excess plants, brands and equipment that will eventually be sold or liquidated under court protection.

GM said the Hummer transaction was set to close by the third quarter of this year and should secure more than 3,000 jobs in manufacturing, engineering and at Hummer dealerships around the United States.”

By the way, here’s a great article on General Motors from the Wall Street Journal.

It’s by John D. Stoll, Kevin Helliker and Neal E. Boudette entitled: A Saga of Decline and Denial.

It begins:

“The beginning of the end for General Motors Corp. as an independent company was marked by a denial”

It’s a great read on a sad ending. On Monday GM filed papers for Chapter 11.

Related Articles:

General Motors and Chrysler End Up Back on Empty

General Motors Falls to 1929 Levels

The Hummer and the Ash Heap

GM, Ford, Toyota, See U.S. Sales Tumble

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