BIZ: GM To Sell Hummer, Saab and Saturn
General Motors is showing initiative by shedding more unprofitable brands from its repertoire. Recently, GM announced that it would phase out Pontiac completely. Last week, GM announced that its Opel brand was to be sold to Russian and Canadian investors. Now it seems that Hummer, Saab and Saturn are close to be sold as well.
Detroit-based GM said it has reached a memorandum of understanding with a buyer for Hummer, though it did not name the buyer or the price. The automaker said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships.Source: www.google.com
It seems that until the deal is settled, we will be left guessing as to who the perspective buyer actually is. Considering the US military are heavily dependant on the Hummer brand, it would be strange to see this brand go overseas.
Saturn also has a chance of surviving this Financial Crisis. The ailing brand may manage to find a buyer that will be able to bring it to life. Saturn has been unprofitable since its inception, so GM's announcement that there are 16 potential buyers for the brand is quite surprising.
Saturn has lost money since GM launched the brand in 1984 - first marketed as "a different kind of car company" - as a way to fight off competition from foreign competitors, such as Toyota Motor Co.Source: online.wsj.com
One of the buyers is Opel's purchaser, Magna, which may benefit from purchasing Saturn after purchasing Opel by consolidating the two and trimming overhead.
GM also mentioned that there are 3 potential buyers for its Saab brand. If GM manages to trim down enough overhead, it may pull out of this Financial Crisis alive.
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BIZ:
Hummer to Sell to China
It looks like Hummer will be going overseas too ... to China of all places. It looks like the American Military will need a new source for their high end SUVs.
A person briefed on the deal says General Motors Corp. has a tentative agreement to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co. of China. GM announced Tuesday that it has a memorandum of understanding to sell the brand of rugged SUVs, but the company didn't disclose the buyer.Source: www.google.com
Sichuan Tengzhong deals in road construction, plastics, resins and other industrial products, but Hummer would be its first step into the automotive business, said the person briefed on the deal. The person spoke on condition of anonymity because the details have not been made public.
Source: www.breitbart.com
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