GM sheds Hummer

The struggling automaker plans to sell the brand to a Chinese manufacturer

Just one day after it filed for bankruptcy protection, GM has announced it may be shedding its Hummer brand. It’s expected the buyer, which has yet to be named, would take over Hummer sometime around the third quarter. Long the bane of environmentalists everywhere, Hummer was once a hugely profitable brand for the fledgling automaker. However, rising gas prices—and, presumably, good taste—soon conspired to turn it into a liability for GM. The company wouldn’t reveal how much it will make from the sale, but previous bids for Hummer were reportedly in the sub-$500 million range.

UPDATE: Media reports indicate the buyer is Chinese equipment maker Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd., which manufactures special-use vehicles, structural components for highways and bridges, and construction machinery. Another buyer has reportedly shown interest in the SUV brand, but talks with it are on hold while GM attempts to finalize the deal with Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd.

CNN Money


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