GM Flogging HUMMER, French Factory
Despite all the hush-hush talk of Russian oligarchs and Indian auto magnates, the tree-hugger (and GM’s) four-wheeled nemesis is still on the block, unloved and unsold. Yes, The General’s finally dropped the pretense that their HUMMER brand is under “strategic review.” With the American automaker scrimping for lost change (and borrowing billions from Uncle Sam), GM Treasurer Walter Borst is touring the globe with his cart and pony show, now with a “Make Me An Offer on Our French Factory” slide. According to the AP, who bought a “I Went to the Deutsche Bank Leveraged Finance Conference and All I Got Was a Lousy GM Brand” T-shirt, “The slides posted on GM’s [investor] Web site Wednesday say the assets under review are worth $2 billion to $4 billion.” With high labor costs in Old Europe and rampant overcapacity everywhere, it would be wildly optimistic to think that the Strasbourg plant would get even a quarter of that amount. As for HUMMER, could there be a worse time to sell the brand? The really scary answer: yes. Meanwhile, GM’s determination to slice its way to profitability– or at least survival– continues unabated. The Detroit News reports that GM plans to “accelerate” its $10b cost-cutting program. Product development– save the federally funded and subsidized Chevy Volt and Cruze– is sure to take a hit. Look for more badge engineering at a dealer near you.
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Hmmm, what to pay for Hummer. How much is the tooling worth as scrap and the real estate solely as property for redevelopment? About that much.
GM should create the upgraded 4 cylinder plant that could be plugged into any existing car that was correct for its weight. GM could go up to 40 to 1 weight to power ratio. The economy cars getting the 40 to 1 weight to power ration. Economy car lovers generally accept slow as you go as long as the price of car is good and gasoline costs low. By the way, economy car lovers are not poor, they sometimes are people that see cars as they are. Something to get them, there from here. GM please! Volt power train could be released without the full battery pack. GM think!
I believe that the H3 is actually a good marque in Europe now. And in UAE and Saudi as well. All in the automotive kingdom does not revolve around the UK. Thanks God!
monkeyboy- The UK automotive world doesn't even agree with Clarkson. blindfaith- 40 to 1 is a pretty weak car if I get what you mean. That would mean that something the size of a Malibu (3500#) would have a 87HP engine.