GM Has Three Bids For Hummer, Reports Say
April 09, 2009
Three bidders with offers from $100 million to $200 million are interested in General Motors' Hummer brand, media outlets are reporting.
None are automakers, one is from the U.S. and two are from overseas, Reuters reported Thursday.
In addition to paying GM cash, the buyer would assume GM's liabilities for its 125 Hummer dealers in the U.S. and commit further investment to engineering, marketing and sales, Reuters reported.
We have received several strong bids for the brand and those are in the final stages of review," GM spokesman Nick Richards told Reuters. "We are cautiously optimistic that we will report a favorable outcome to sell the brand in a very short time period."
GM's Shreveport, La., plant that makes the Hummer H3 and H3T would not be part of the deal, sources told news service. However, GM would continue to make those models for the new owner. The Louisiana plant also produces the Chevrolet Colorado and GMC Canyon pickup trucks.
No word on what arrangement would be made for GM's plant in South Africa that assembles the right-hand-drive H3 for export.
Photo by GM
Under an agreement to sell Hummer, GM likely would continue to build the Hummer H3 and H3T (pictured) at its Louisiana plant for the new owner.
Another source told Reuters GM had rejected a bid from a Kentucky industrialist.
Whatever GM gets for Hummer, it likely will be far lower than he $500 million to $750 million that investment bankers initially estimated.
GM had planned to make a decision to sell or eliminate Hummer by March 31, but that plan was interrupted with the abrupt resignation of CEO Rick Wagoner and the appointment of Fritz Henderson as his replacement on March 29. Henderson, at his first press conference as CEO, said a decision on Hummer would be made within "days or weeks" rather than months.
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