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Exploratory Talks To Sell HUMMER To China Fall Through, GM Thoroughly Failing At “Courage Under Fire”

Posted in auto industry, GM, Hummer, Newsworthy by Suzanne Denbow | August 18th, 2008 | 1 Response |

As the HUMMER division looks out upon a dismal landscape in the civilian market, parent company GM has been met with yet another roadblock as they desperately try to rid themselves of the powerful line of off-road vehicles. In today’s news, it was announced that Chinese SUV manufacturer Hunan Changfeng has ended discussions with GM about the purchase of the HUMMER line. One of the top 3 market leaders in the Chinese auto industry, Changfeng showed an active interest in taking over GM’s HUMMER division earlier this year but has recently withdrawn all tenative offers. Negative market analyst feedback and the ever-fluctuating price of oil apparently caused Changfeng to be a little trigger-shy. 

All hope not lost, GM is continuing talks with India-based Tata Motor Corps – the same company that relieved Ford of its ailing Jaguar and Land Rover subsidiaries in June.

GM, which as been frantically trying to unload the HUMMER line as quickly and as quietly as possible since earlier this summer, had already bought out several private dealerships, leading some to speculate that the HUMMER line would be killed entirely. Exploratory talks with companies like Russia’s Oleg Deripaska and the aforementioned Tata Motors, however, offer a glimmer of hope on the HUMMER horizon.  

We say: GM – Look at Chrysler LLC. Instead of sending Jeep to the proverbial glue factory, Chrysler is performing massive reconstructive surgery to keep the Jeep line current and “green.” They’re not throwing in the towel, they’re not buckling under the crippling pressure of the global warming myth. So why can’t you do the same? As the Marines whom your HUMMER line helps outfit are wont to say, “Adapt, Improvise, and Overcome.” Seriously GM, man up.

[Source: Cluster Stock]

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  1. If you’ve ever ridden in the original Hummer, the H1, now no longer available to the civilian market, you’d know that you can go sideways on an incline; and put your hand out and touch the soil. (Yes, I have done that, thanks to a pal who sold them in the mid-Nineties at a Hummer dealership.) While the H3 is credible enough, from what I’ve read of its off-road exploits in the Baja 1000 race, the H2, configured using the read-end differentials of a GM truck, front and rear, is just an attempt to cash-in on the entire “branding” group think of GM.

    Tata bought Land Rover and Jaguar from Ford to get the proprietary four-wheel drive system of Land Rover. From published reports, Ford said, “It’s a package deal,” since it wanted to rid itself of Jaguar in the so-called worst way imaginable.

    So why would someone want to buy Hummer? The H1’s underpinnings would be the key selling point, methinks. I doubt that any new owner would want to continue to sell the H2, now a collosal weight on the inventory of Hummer dealers, across the states; and the H3 would likely survive only with the smaller engine available, an in-line five-cylinder if memory serves.

    And GM shouldn’t expect to make any money on the sale, only offset losses. But hey, when you lose $15.5 billion (USD) in a quarter, that’s enough isn’t it?