GM, looking to get rid of Hummer since last summer, may have found a buyer.
Looking for any way possible to return to profitability, General Motors has reportedly put the Hummer brand on the market. The Detroit Free Press reports that a Chinese company, as well as a private equity group, have begun talks with GM. It is unclear if the two firms are working together, or developing competitive bids.
General Motors recently received $13.4 billion in low-cost loans as part of a U.S.-backed auto industry bailout. In response to rapidly fluctuating oil prices, General Motors has indicated that they will invest more in alternative fuel technologies. Their all-electric Chevy Volt is due out next year. The company hopes it can single-handedly re-energize the group.
With so much vested in alternative fuels, it is no surprise GM would consider dumping the Hummer brand. The historical profitability of the label should make it very sellable, despite the brand's recent sales declines. A quick infusion of a large sum of cash would also demonstrate GM's viability to the U.S. Treasury, a requirement under terms of the loan.
GM representative Joanne Krell would only reconfirm the automaker's ongoing audit of Hummer. The company began an internal discussion on the future of Hummer last June. "The Hummer review is progressing and an update is due by the end of the first quarter," Krell told the paper.
More talks are scheduled for this week, reports the newspaper, as GM readies a presentation on their return to profitability. GM will present an update on their company to the Treasury on Tuesday.