Print Edition
August 2010 
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Three Remain In Race For GM's Hummer |
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Muazzin Mehrban, April 2009 |
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(09 April 2009)
According to reports, there are now just three parties interested in acquiring General Motors’ (GM) underperforming brand Hummer. Sources close to the matter said current offers ranged from $100m to $200m in cash and other commitments.
Surprisingly, none of the bidders are automakers, and only one is from the US. Two of the bidders are thought be a private equity firm and a wealthy private investor.
Under the sale terms, the buyer would take on GM’s liabilities for its 125 US Hummer dealerships and make commitments to invest in areas such as engineering and marketing.
However, certain GM plants, such as the one in Louisiana which makes the Hummer H3, will not be part of a deal. Instead, GM will continuing making the model and supply it to the new owner.
“We have received several strong bids for the brand and those are in the final stages of review,” said GM spokesman Nick Richards, speaking to Reuters on Wednesday. “We are cautiously optimistic that we will report a favourable outcome to sell the brand in a very short time period.”
GM has been trying to offload Hummer for almost a year now, because of its declining sales and failure to match company expectations.
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