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General Motors (NYSE: GM) has been trying to find a buyer for its struggling Hummer brand for months, without success. But with its stock price continuing to get hammered as market conditions deteriorate, General Motors has a new solution: trying really, really hard to find a buyer.
The Wall Street Journal reports reports (subscription required) that "A Hummer spokeswoman said the auto maker has begun sending out a sale prospectus for Hummer."
Analysts are predicting that, without some sort of bailout, sale, merger, or cash infusion, GM could run out of money within the next year. If General Motors is anywhere near as bad at selling car brands as it is at selling cars, shareholders are in trouble.
If GM is able to complete a sale, it probably won't be on great terms. Everyone knows GM is desperate for cash, and there aren't exactly parties lining up to bid on Hummer.
Meanwhile GM is reportedly still exploring the possibility of a deal with Chrysler. Good luck with that.
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Reader Comments (Page 1 of 1)
10-18-2008 @ 6:50PM
Ashram said...
The best thing to do with Hummer would be to either phase it out in much the same way Oldsmobile was or convert the Hummer division from one that makes civilian products to build vehicles specifically for the government.
The Hummer division could partner with AM General in building military HMMWVs (the military H1) and its successor.
THe Hummer division could also branch out and build other general purpose or task-specific vehicles for government purposes.
If you can't sell it, then do something else with it that may make it work for you.