HUMMER Announcement Could Be Delayed, Sale Still Likely

Mon, Mar 30, 2009

Hummer News

GM LogoOn February 17th, then Chairman and CEO Rick Wagoner said GM “will make a final decision to sell or phase out HUMMER by March 31st of this year.” After the events in the last 48 hours, it’s possible the announcement regarding the ultimate fate of HUMMER won’t be made tomorrow as promised.

GM’s chairman and CEO Rick Wagoner was asked to step down by the White House over the weekend, apparently after some disappointing meetings in Washington with Obama’s automotive task force. Monday morning Obama addressed the nation regarding the automotive industry.

The president articulated his belief that neither GM or Chrysler had gone far enough with their plans for viability, and before the U.S. Government would loan more money to the automakers, they would need to make further cuts. Obama gave GM another 60 days for more planning, and also announced that starting today, the government would back GM and Chrysler’s new car warranties during their restructuring to help calm fears of bankruptcy.

Though it’s still possible that we may have some HUMMER news tomorrow, it most likely will not be an ultimate decision about the brand as previously expected. Regarding a sale, HUMMER spokesperson Nick Richards said Monday night they are “cautiously optimistic that we will report a favorable outcome to our efforts to sell HUMMER within a very short time period.”

Troy Clarke, GM’s president of North America told dealers Monday afternoon that “Our efforts to sell Hummer are proceeding, and there are several parties interested — and I would say really interested — in the brand…We’re still very much in the process, although that process is maturing.”

HUMMER owners, enthusiasts, dealers, manufacturers and suppliers are all on the edge of their seat tonight, and although a definitive answer may not come in the next 24 hours, there is plenty of evidence that suggests a sale is much more likely than simply discontinuing the brand.

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