Denials Aplenty Surrounding HUMMER Brand Sale

Mon, Aug 18, 2008

Hummer News

There has been plenty of speculation on who may be interested in purchasing the HUMMER brand from GM, although recently, everyone seems to be in denial mode.

Two companies that were said to be in talks with GM were India’s Mahindra & Mahindra and Russian billionaire Oleg Deripaska, and now both are denying any interest in purchasing the brand. “There has been a lot of speculation. I want to say categorically we are not pursuing Hummer,” said the vice chair of Mahindra. Oleg Deripaska’s company Russian Machines also echoed that sentiment, saying it has “no strategic plans” to pursue an acquisition of HUMMER. After receiving many media requests, Russian Machines added that it “has not received any proposals to consider such an acquisition.”

What about China? Chinese manufacturer Changfeng was reportedly in talks with GM, but decided not to continue after touring HUMMER’s U.S. production facility, claiming the brand had limited potential. According to the same Reuters report, other Chinese manufacturers like SAIC Motor Corp and Dongfeng have also said they have little interest in the brand.

All these denials come after GM’s chief Rick Wagoner saying there is “significant interest” in the brand.

3 Responses to “Denials Aplenty Surrounding HUMMER Brand Sale”

  1. thatmanoverthere Says:

    My sources seems to conflict what the media is reporting on GM’s relationship with Hummer and AM General.

    According to my sources, GM does not own Hummer. The deal is an licensing agreement that reverts back to Am General after a number of years if GM chooses not to renew the contract.

    I heard a rumor the deal was extended last year to sometime in 201x.

    In which case, what company in their right mind would pay hundreds of millions to a billion dollars for a Brand that they wouldn’t own.

    AM General isn’t stupid, and the Hummer licensing details are not public knowledge.

    Connecting the dots, GM can’t sell something they don’t own in the first place.

  2. admin Says:

    GM Owns HUMMER. AM General is only involved as their production facility of the H2. This is from AM General’s website:

    “In December 1999, AM General and General Motors Corporation finalized an agreement to jointly pursue product, marketing and distribution opportunities for HUMMER. GM acquired the exclusive ownership of the HUMMER brand name worldwide and the current HUMMER was renamed the HUMMER H1. In 2002, AM General began assembling the HUMMER H2, a new “next generation” sport utility vehicle designed by GM, at a new factory in Mishawaka. GM now has responsibility for marketing and distributing all HUMMERs. Although GM acquired the HUMMER brand, they do not own any part of AM General.”