GM Blows HUMMER Deal
GM had promised to have a decision by the end of March on whether it would sell or fold HUMMER. They missed that deadline along with other key targets set by the White House-appointed Presidential Task Force on Automobiles (PTFOA). Not that there wasn’t interest in the aptly named pornography-on-wheels. GM simply, well, blew it.
The HUMMER brand could have been sold by in March, Reuters reports. According to their latest report, an industrialist from Kentucky offered GM $100 mil in cash for the brand, along with an investment commitment of another $100 mil. Most importantly, the obviously nutty or filthy rich Kentuckian offered to assume GM’s franchise agreement liabilities, estimated at about $350M. The bidder, owner of several companies that supply parts to the auto and aerospace industries, put together plans for new powertrain options for HUMMER, including a hybrid H3 that would have doubled the Hummer’s “fuel economy.”
Did GM sing hallelujah, jump at the offer and go on to solving more pressing matters? Of course not. GM wanted another $100M in cash. After not receiving it, they walked away from the deal.
As reported by RF, HUMMER is still for sale. Reuters says three bidders are still in the running; the deals under discussion have less sugar content than the one from Kentucky. Offers range from $100M to $200M in cash, “in addition to other commitments.”
GM’s plant in Shreveport, Louisiana, which makes the Hummer H3 and the H3T pickup, will not be part of the deal. GM wants us the factory to make HUMMERs and supply them to the new owner. GM’s PTFOA sugar daddies may not like this, as they are putting GM “under pressure to simplify its vehicle line-up and streamline its engineering efforts.” Good luck with that.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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ZoomZoom: I can't say that I'd want a Hummer, even free. They're just hate targets these days. I can creep down the street in my TrailBlazer all day without so much as a glance, but Hummers seem to have the propensity to make people cuss and get all pissy.