GM to Shut Down SAAB, HUMMER Becomes Last Brand Liquidation Hopeful

Fri, Dec 18, 2009

Hummer News

GM to Shut Down SAAB, HUMMER Becomes Last Brand Liquidation Hopeful

Reducing the number of total brands offered was one of the key components in General Motors’ restructuring plan announced earlier this year. Pontiac was to be shut down, and Saturn, Saab, and HUMMER were to be sold or shut down. GM announced today that Saab would be shut down, leaving HUMMER as the only brand still hopeful for a successful transition outside General Motors.

A few weeks ago we found out GM’s attempt to sell the Saab brand to Koenigsegg had fallen through, but GM insisted that it still had “serious interest” in the brand. That serious interested was coming from Spyker Cars. Despite a successful deal to sell some SAAB technology to Beijing Auto, GM said it would be unable to sell Saab to Spyker citing negotiation and timeline issues.

In September, GM announced that a deal to sell Saturn to Penske Automotive would not go through, and that the brand would be wound down over the next year or so.

That leaves HUMMER – the last of the three brands with any hope to become separate from General Motors.

While the process to sell HUMMER to Chinese heavy industrial manufacturing company Sichuan Tengzhong remains on track, it has seen its fair share of delays – the biggest of which is obtaining regulatory approval from both the U.S. and Chinese governments. According to our sources, it’s not necessarily the terms of the deal that are causing the delays, it’s the inherently time-consuming nature of governmental procedures.

The HUMMER deal is a little bit different from the Saab and Saturn deals, though – since the HUMMER brand is showing significant overseas growth and potential, it’s been a profitable brand for GM, and the deal is not contingent upon financing approval – Tengzhong has already secured financing.

Although there have been delays and other GM brands have met their demise, we’re still optimistic that HUMMER will have a successful transition in the near future.

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12 Responses to “GM to Shut Down SAAB, HUMMER Becomes Last Brand Liquidation Hopeful”

  1. orh2 Says:

    Despite its suicidal business practices, I cannot help but feel a pang of real sadness as I watch a once great company (GM) fall apart. The Pontiac Brand had a tremendous impact on the automotive world and it is maddening to see this company, and others, lost due to management malfeasance.

    Oh well, times change!

  2. DRTYFN Says:

    The blame for the demise of GM should be laid at the feet of the parasitic unions.

  3. Alpha Says:

    I completely agree with DRTYFN, It is sad to see GM fall apart. I hope that Hummer remains an American icon.

  4. Alpha Says:

    If the hummer brand ends, then part of America dies as well.

  5. LC Says:

    I hope the Hummer deal is completed soon. I’m getting ready to buy a H2, and my wife wants to trade her H3 for a H4 in the future.

  6. Opportunities Says:

    Wooohaooooo No good

  7. willie Says:

    GM really screwed up with the way they handled the hummer brand when they decided to sale the brand two years ago it crippled Hummer sales AND sales declined in the USA because no body knows what is going on with the company. I have owned 4 H-2s they are great vehicles and do what they are designed for its most likely the best SUV made AND IF SOLD will take some serious marketing to build back up again . GM SHOULD KEEP THEM ITS THE BEST TRUCK THEY MAKE………

  8. willie Says:

    HUMMER THE LAST TRUE AMERICAN ICON AND FREEDOM MACHINE…

  9. BILL Says:

    AS a Hummer fan since 2003 when they rolled over and out into the WORLD OF the suv seen these vehicles where loved or hated any one who could afford one loved them any one who could not seemed to dislike them they seemed to represent the AMERICAN SPIRIT OF POWER AND A RUGGED GO ANY WHERE IN CLASS SUV WAS born a true sense of AMERICAN power very cool trucks as others said if GM WOULD HAVE FOUGHT THE FIGHT THE CUSTOMER BASE WOULD OF GROWN WITH THEM JUST LIKE HARLEY BACK IN THE 80S OF COURSE THEN WE HAD A GREAT PRESIDENT RONALD REAGEN WHO HELPED SAVE H-D TO HELP KEEP ANOTHER AMERICAN ICON STAY AROUND .HUMMER STANDS FOR MORE THEN JUST ANOTHER SUV IT IS PART OF WHAT MADE AMERICA SO GREAT ITS JUST TO EASY FOR AMERICANS TO JUST GIVE UP NOW A DAYS SAME AMERICA AND BUY AMERICAN..

  10. hummdude Says:

    and it all depends on a country on the other side of the planet.

    made in china.

  11. Rod. Hall Says:

    Let’s go racing.

  12. admin Says:

    I’m in….