GM CEO on HUMMER: Should It Go or Should It Go?
It's always good to know the boss has your six. Yesterday we reported HUMMER's general manager said all the talk about GM selling eco-unfriendly-brand was "just speculation." According to the Wall Street Journal, Rick Wagoner announced that his employer is "preparing data and other materials to open formal talks" with "potential buyers." So much for "speculation." The usual "people familiar with the matter" told WSJ that GM is no longer "seriously considering" revamping HUMMER. Basically, GM can't afford to do it because of "a potential liquidity crunch" (to put it mildly). Of course as WSJ points out, selling HUMMER would be only "a minor part of GM's plan to raise the $15 billion in additional liquidity by the end of 2009 that it needs to remain viable." The only real hurdle they'll have in shutting down HUMMER and shuffling it off to India, China or Russia will be dealing with approximately 170 HUMMER dealers who have state franchise laws on their side. No doubt the
vultures lawyers are already circling.
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