July 31, 2008
Reuters is confirming earlier reports that Indian car-maker Mahindra and Mahindra is in talks with GM regarding a purchase of the HUMMER brand. One of their sources says that Mahindra doesn’t have an overwhelming desire to purchase the brand, but early discussions are continuing. Automakers in Russia and China are also said to be potential buyers, but specific companies were not identified.
Stateside, GM’s primary financing partner GMAC announced a $2.5 Billion hit today, and also announced plans to scale back leasing. Roughly $18 billion of GMAC’s $30 billion lease portfolio is on trucks and SUVs – and in June, GMAC only recovered about 75% of their expected returns on SUVs. The changes in the U.S. won’t be as drastic as GMAC’s complete elimination of auto leasing in Canada, but they will be scaled back. GMAC lease rates will be increased, and their criteria for approval will be more stringent according to Left Lane News. Also, GMAC SmartBuys will be discontinued, according to the Earth Times.
The news shouldn’t come as much of a shock – after all, a company like GMAC can only take so many losses before it needs to dramatically change its ways. Hopefully GM and GMAC will be able to keep leases affordable, since many consumers choose leasing and SmartBuys for their low monthly payment.
July 29, 2008
Some new images have emerged from the San Pedro, California movie set where the next Transformers movie is being filmed. The picture shows the HUMMER HX concept lined up behind an H3T – both sporting ‘flat’ color paint jobs. Much clearer than the original shots!
Source: Transformers Blog, Via Jalopnik
July 28, 2008
Earlier today, General Motors announced further details of their aggressive ‘realignment’ to current market conditions, this time in the form of manufacturing cuts. A total of 117,000 trucks and SUVs once scheduled for production have been cut. Among those cuts are slowdowns at the HUMMER H2 plant in Indiana, and the HUMMER H3 plant in Louisiana.
The HUMMER H3 plant will reduce its output by eliminating one of their two shifts – the evening shift. According to GM spokesperson Tony Sapienza, the cuts in Shreveport, LA will affect about 670 hourly workers and 90 salaried employees. HUMMER production at the H2 plant will remain at one shift, but output will be reduced by one third. Since the H2 is manufactured by Humvee-maker AM General, job reduction figures for the Mishawaka, IN plant have not yet been made available.
General Motors has already spent over $73 million in improvements to its Shreveport plant just to produce the upcoming HUMMER H3T vehicle scheduled to hit dealers later this year. That plant also produces the GMC Canyon and Chevy Colorado pickup trucks in addition to its H3 brethren.
Meanwhile, the HUMMER H2 plant is exploring other avenues of production, most recently with the possibility of manufacturing the unique looking Standard Taxi.
Reuters is reporting that General Motors is quietly trying to tie up loose ends with Hummer dealers, including having buyout discussions:
General Motors Corp is in negotiations with Hummer dealers to buy out stores as it looks to sell the SUV brand whose popularity has plunged amid high gas prices, Automotive News reported on Monday.
The No. 1 U.S. automaker, which has said it is considering “all options” for Hummer including the sale of the brand, also paid out performance-linked bonuses to dealers in advance, the paper quoted several Hummer dealers as saying.
GM is currently trying to sell the Hummer brand. While GM has not confirmed the dealer buyout talks, they said on Friday that several interested bidders had come forward.
July 25, 2008
Earlier today, Richard Wagoner reiterated his statement from last week that several parties are interested in purchasing the HUMMER brand. “We have some interested buyers, and I can’t tell you anything beyond that right now but we are moving as fast as we can,” Wagoner told reporters in Michigan. Last week Wagoner laid out GM’s plan to raise $15 billion in liquidity which included the sale of assets, and confirmed that HUMMER is the only brand currently on the table.
Source: Reuters
July 23, 2008
AM General, the maker of the military Humvee and civilian HUMMER H2, announced today that retired General Paul Kern will take over as President and COO effective August 1st. Previously that post was held by James Armour, who will remain the company’s CEO.
Kern, who served in Vietnam and the first Gulf War, will eventually take over the CEO position near the end of 2009, and serve as company chairman through 2011.
Source: Chicago Tribune
July 22, 2008
While GM’s top brass are determining HUMMER’s fate, the HX concept is off making new friends in Britain. Reviews have been relatively positive from the British International Auto Show, similar to U.S. press coverage of the new vehicle. The HUMMER HX concept runs on FlexFuel, and may even achieve fuel economy close to 30 mpg.
HUMMER’s showcase of the HX is a little bittersweet. On one hand, it’s good to see HUMMER still promoting the brand to its full extent. On the other, it’s very possible that they’re only using the HX display to show potential buyers there’s still interest in the iconic brand.
Related Headlines:
GM Hires Citibank to Assist in HUMMER Strategic Review
HUMMER Speculation Continues
GM Could Avoid Sale of HUMMER with New Models
HUMMER Lets Speculation Begin
Official Word from GM Regarding HUMMER Brand Review
July 21, 2008
Here in the United States, it isn’t uncommon to see women customizing their own vehicles. However in the Middle East, it’s apparently far less common and HUMMER is doing their part to make it easier for women buyers to have a custom vehicle that is ‘like nothing else.’
“HUMMER H3 ‘Paint me with your dream color’ campaign gives the power to our female customers who want their vehicle to be different from others,” says Johnny Amiouni of HUMMER at General Motors Middle East. “We are delighted to provide them with a car that not just meet their needs but also fulfills their desire to be different.”
Hummer H3s are available in 10 different custom colors like ‘Tough Cookie Lilac’ and ‘Side Kick Pink,’ and can even include interior enhancements like color-matched seat backs and console pieces.
GM would undoubtedly ruffle a few feathers in the faithful U.S. HUMMER community with a promotion like this, but HUMMER Middle East is showing a nearly 30% increase in 2008 over 2007 sales.
July 16, 2008
Earlier this year, HUMMER and Tread Lightly formed a partnership that supports trail maintenance and cleanup activities to promote responsible off road driving. Their latest project lands the two groups in the Sierra National Forest – specifically, the Bald Mountain off-highway vehicle trail in California.
If you’d like to volunteer for this great opportunity, check out our FourWheeler.com for specific information.
July 15, 2008
In this morning’s announcement from GM Headquarters in Detroit, CEO Rick Wagoner laid out his plan to provide 15 billion in necessary funds by the end of 2009. There were two areas discussed, both operational changes and asset sales such as brands and real estate.
Operational changes included decreasing truck capacity by another 150,000 units from their original cuts announced June 3rd. President and COO Fritz Henderson told reporters after the conference that specifics of those cuts were not being announced today, saying it would only be appropriate to tell those affected like workers and unions first. Other operational changes include slashing the motorsports/promotions budget, reducing salary costs by 20%, and delaying all next generation truck, SUV, and V8 design spending. This isn’t all surprising given older news about the next generation HUMMERs.
Wagoner continued on to the second half of his announcement about their ‘broad assessment’ of sales or modifications to its assets, but remained very vague on any details. He confirmed that HUMMER is the only brand currently under “strategic review” and the only brand currently being considered for sale, and that GM “is continuing to focus on profit improvement initiatives” across all other channels. When asked by a reporter if there was any interest in the HUMMER brand so far, Wagoner said, “Yes, we’ve received a lot of interest,” but would not elaborate at this time.
The operational changes were the big story today – with the budget being cut for motorsports, we’ll let you know what that means for Team HUMMER.
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