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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- EBFlex No they shouldn’t. It would be signing their death warrant. The UAW is steadfast in moving as much production out of this country as possible
- Groza George The South is one of the few places in the U.S. where we still build cars. Unionizing Southern factories will speed up the move to Mexico.
- FreedMike I'd say that question is up to the southern auto workers. If I were in their shoes, I probably wouldn't if the wages/benefits were at at some kind of parity with unionized shops. But let's be clear here: the only thing keeping those wages/benefits at par IS the threat of unionization.
- 1995 SC So if they vote it down, the UAW gets to keep trying. Is there a means for a UAW factory to decide they no longer wish to be represented and vote the union out?
- Lorenzo The Longshoreman/philosopher Eri Hoffer postulated "Every great cause begins as a movement, becomes a business, and ends up as a racket." That pretty much describes the progression of the United Auto Workers since World War II, so if THEY are the union, the answer is 'no'.
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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.