After GM declared bankruptcy this morning, many are wondering what this will mean for HUMMER’s future as well as its current operations. The short answer: Not much.
In his remarks Monday afternoon, CEO Fritz Henderson emphasized that GM is still open for business, and that all warranty, service, and customer support systems will continue without interruption. Both current customers and potential HUMMER customers should see no difference at the dealership level even after today’s announcement.
Service centers at dealerships will operate normally and be able to complete warranty work on HUMMERs, and new HUMMER sales incentives for July are expected to be released in the next few days. We expect incentives to be in line with June’s numbers.
President Barack Obama extended his original commitment of the U.S. Government backing the manufacturer’s warranty to now include all new GM vehicles purchased during the bankruptcy period. If for any reason GM can’t cover the warranty, the United States will select an outside group to handle the claims. As HUMMER warranties go, it’s likely that whoever purchases HUMMER will assume all warranty obligations as part of the deal, making this somewhat of a moot point.
Regarding the HUMMER brand sale, experts say that GM’s chapter 11 shouldn’t hamper the completion of a sale, which is expected to be complete by Q4 of this year.
We won’t be able to predict what your HUMMER experience will be like in the future until we have more information on who will be purchasing HUMMER and the aggressive investments they plan on making in the brand. Until then, it’s business as usual for HUMMER owners and potential owners.