General Motors said yesterday it's planning on shuttering the HUMMER brand once and for all--and today it's offering up hefty rebates to move the remaining HUMMER trucks from its inventory.
CNNMoney reports the GM brand has about 2200 vehicles left in stock, and says the automaker will put rebates of up to $5000 on the H3T pickup-truck versions of the smaller HUMMER H3 sport-ute, depending on the model year. It's also offering $6000 in rebates on the HUMMER H2 and H3 wagon-bodied SUVs. GM also will offer zero-percent financing on the remaining vehicles for up to six years.
We delivered HUMMER's obituary a few weeks ago, when a deal to sell the brand to China's Sichuan Tengzhong fell through when the Chinese government refused to let the deal go through, and the fledgling heavy-duty truckmaker could not line up financing. Since then, GM has given the brand an extension to find another buyer, but no company--not even Mahindra, the only logical buyer--has come forward. This week, GM confirmed to dealers it would start the difficult part of the wind-down phase and terminate dealer franchises.
GM hasn't said when the shutdown will be complete, and HUMMER dealers are said to have an expensive buy-out clause in their franchise agreements. A last-minute sale of the brand marks and the Shreveport, La., plant that builds the H3 lineup (and Canyon/Colorado pickups) isn't out of the question--and still could be a much better financial deal even if GM has to let the brand go for significantly less than the $750 million Sichuan Tengzhong had offered.
2010 Hummer H3TEnlarge Photo