General Motors announces sale of Hummer

Today (June 2, 2009), General Motors announced that it has entered into a memorandum of understanding with a potential buyer of its Hummer brand, in the process giving hope to about 3,000 workers in the USA.

It had been thought that, with the restructuring of General Motors, the Hummer brand would be one of the nameplate casualties, especially as the US government is pushing GM to think more about fuel efficient cars than large off-roaders.

Given the financial climate, it was doubtful that a suitable buyer would be found for Hummer, but the latest statement is clearly optimistic that the anonymous new suitor will not only forge ahead with new product development, but will also retain most of the workers in manufacturing, engineering and at dealers in America.

"Hummer is a strong brand," said Troy Clarke, President of GM North America. "I'm confident that Hummer will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker."

Hummer's buyer has not yet been announced and it's likely that it'll remain the subject of rumour until later this year, when the sale is expected to be finalised.

Shane O' Donoghue