Reports Automotive News
, GM has sent a prospectus to potential purchasers of its HUMMER brand. Fighting for survival in an abysmal market, the automaker is under considerable pressure to raise money and sell off assets, and money-losers like HUMMER, whose low sales have shuttered dealerships
, make the most sense for first sales.
GM spokesperson Joanne Krell was tight-lipped in her commentary, saying simply, "today we began the process of getting offering materials to interested parties." She neither revealed the size of the prospectus nor how many copies were being sent. Additionally, GM won't identify potential buyers, though it does say that there is interest. Last June, the automaker put the division up for strategic review.
The HUMMER story started in 1999, when GM bought marketing rights to the brand from AM General, the maker of the stout military Humvee, a star of Desert Storm. All 875 sales in 2000 of the unwieldy, slothful H1 went to bruisers like Arnold Schwarzenegger. But when GM created the H2
, it started a wave of impressive sales that peaked at 71,524 in 2006.
Fitment of an asthmatic five-cylinder in the kinder, gentler H3
couldn't silence the environmentalists and the critics (nor satisfy the power hungry), and it seems that recent spikes in fuel prices and the resultant popularity of fuel-efficient vehicles have sealed HUMMER's fate. HUMMER sales were down 47.4 percent through September in comparison to the same time period last year.--Colin Mathews