When word came out that GM was looking to either sell Hummer or shut it down, many wondered who exactly would want to buy the slumping, CAFE-challenged SUV division. Despite denials that the brand was even on the block yet, potential suitors from Russia, China, and India all took themselves out of contention. However, now that the General is officially taking bids for Hummer, interest in the off-roaders has emerged from a new destination -- the Middle East.
Hummers became famous in America for their impressive performance during the first war in Iraq, and speaking recently with Reuters, GM's Middle East managing director Terry Johnsson now confirms that two separate investors from the Gulf Arab states are interested in purchasing the trail-ready brand. Saying, "There has been interest from various parties within the Gulf," Johnsson notes that, with Gulf money already invested in automakers like Aston Martin, "there is a precedent" for buying Hummer and "those kinds of solutions could be very realistic solutions."
GM is currently readying documents for the Hummer sale and hopes to begin formal talks with interested parties soon. That said, Johnsson also believes the automaker may still keep Hummer, saying it's not yet a "foregone conclusion" that the brand will be sold. This would seem unlikely, however, since a recent Wall Street Journal report indicated the General has abandoned plans to redesign the division's lineup for better fuel-economy because the cost would be too high.
Hummer sales were down 61.7% in July, and even with a new "Black Chrome" special-edition H2, things seem unlikely to improve in the near future. Given that GM is cutting costs and investing heavily in new, smaller cars, dumping the brand as quickly as possible seems to make sense -- and what better destination is there for a gas-guzzling, full-size SUV builder than a region with no shortage of its own oil?
Source: Automotive News (Subscription required)
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