AM General for Sale: GM Could Be Interested in Getting Military-grade Hummer
AM General, the brand responsible for the freedom-spreading Humvee (HMMWV) and obnoxious civilian Hummer, is reportedly up for sale. The company is even alleged to have a couple of suitors.
Both General Motors and Fiat Chrysler Automobiles are said to be potential bidders. That’s rather fitting, considering GM’s interesting history with the company. However, we doubt the purchase of the Indiana-based heavy vehicle manufacturer would inspire it to bring back the Hummer H2.
That’s probably fine for the vast majority of the population, but we’d wager there’s a subset who would love to see the civilian H1 go back on sale within its home country. Hopes for such a future should be kept to a minimum, though. While the U.S. hasn’t adopted the same attitude toward fuel economy as the rest of the globe, more-efficient SUVs remain in fashion. The original Hummer would have to undertake a pretty radical transformation under its hood to accomplish that and we can’t see GM selling an H1 EV just yet.
The most likely outcome would be for the buyer to continue to benefit from the company’s existing government contracts or attempt to expand on them. That makes FCA the less-likely candidate, as General Motors has taken a renewed interested in tempting the military with some of its own designs.
According to Reuters, AM General could easily fetch 10 times its annual earnings of $160 million, and is also being considered for purchase by General Dynamics, Oshkosh Corporation, and BAE Systems.
The company’s favorable tax treatment because of its current status as an limited liability corporation, would allow a buyer to reduce the company’s taxable earnings for 15 years. That coupled with recent contract awards could push the ultimate value of the company to over $2 billion in a sale.
As nothing is confirmed and every prospective buyer is remaining silent on the issue, there’s a chance this deal will evaporate and AM General will soldier on unchanged for the foreseeable future. It’s not a small amount of money, even for a large automaker, and GM is keeping itself pretty busy by dumping cash into self-driving and data. Of course, it already outlined the potential military applications of autonomous vehicles with its Silent Utility Rover Universal Superstructure.
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- Ltcmgm78 I think cars need an AM/FM radio for emergency notifications. Driving at night, I will scan the AM frequency just to see what comes up and to be amazed at the different cities I can get after dark. My SAAB had a Euro-spec radio and I could get long-wave (lower freq than the AM band) and found lots of interesting listening.
- Golden2husky You'd be way better off in a base Vette for that money.
- Gene Sedans and coupes don't sell in the quantity that they used to but they still make up a significant market. Why Ford abandoned this segment still baffles me. Again, just look at Toyota, Dodge, Mercedes, BMW, Hyundai, etc who have not abandoned this segment.
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No way FCA should be touching this as they cant even get the frame welds on the new Jeeps right. Scary, scary dangerous stuff. Just more JUNK from Fiat and GM. How can they be trusted?
The H1 and even H2 are an "American" fetish. There is no real global market, even military. They are to big for what they do and are restricted for us in battle (dangerous). With the current Trump Trade Tirade might make some potential buyers shy. It will be interesting to see what its sold for, and to whom. My bet is some developing country or even a country like Turkey.