Following General Motors declaring bankruptcy earlier today, thecompany has now announced it has entered into a memorandum ofunderstanding (MoU) with a buyer for its once strong HUMMER brand.
Although most suspected the sale to happen sooner than later, GMsays it’s a result of the company’s strategic review of the HUMMERbrand and its current rebuilding efforts.
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Under terms of the MoU, GM will not disclose the identity of thepurchaser, however if rumours are anything to go by, it could be abuyer from India. The plan is to have the sale finalised by the end ofthird quarter of this year.
As part of the condition of sale, the purchaser will secure morethan 3,000 U.S. jobs in manufacturing, engineering and at HUMMERdealerships around the country.
Additionally the new owner will have to “aggressively fund future HUMMER product programs”.
With sales of HUMMER vehicles slowing in the last 12-18 months, GM’sdecision to move away from its “big-is-better” image into a more ecofriendly manufacturer is a necessity if the company intends to comeback strong. Troy Clarke, President of GM North America said HUMMER’ssale will make GM “into a leaner, more focused, and morecost-competitive automaker”.
The new owner will have an agreement with GM to continue to contractassemble the H3 and H3T through at least 2010 at GM’s ShreveportAssembly plant. |