Earlier this week it was reported that AM General and China based Changfeng were considering a joint venture to purchase the HUMMER brand from General Motors. Yesterday, a spokesperson for AM General told a local news station the report was false, and that no agreement had been reached and talks were not ongoing.
We believe that these are the possible scenarios in order of their likelihood:
1) AM General, like many companies, would like to keep their possible interest low-key in order to secure the best price for the brand in the next few months.
2) AM General has some interest in purchasing a stake in the HUMMER brand, and will begin talks with Changfeng or another company after the start of the year, making AM General’s statement technically true, though misleading.
3) AM General isn’t telling their spokesperson, and the GM of Changfeng wasn’t supposed to say anything publically.
Time will tell, but as predicted, it will be an interesting few months in the HUMMER world.