Article in the USA Today,today states that the deal for GM’s Hummer Division will happen at “about 150 million”. GM has previously listed (in bankruptcy documents) the value of Hummer at 500 million.
End of the article states “at least GM gets some cash”
Hate to see it go so cheap (could it be called cheap if that’s all anyone whould pay?)
You wonder why at these prices (which seem like peanuts in the auto biz.) that GM could not make Hummer work but the Chinese want the line. Maybe it’s a loss leader to get China in the ball game.
Contract manufacturing would stay in the U.S.
It would be nice to see them bring back the H1, stripped of its ‘luxury’ elements and sold as a cheaper ‘hard-core’ off road truck. That’s virtually the only way I could ever conceive of buying one.
I read the same article. Yeah, that’s a lot cheaper than I would have guessed. Definitely yard sale prices.
I suspect part of the reason is that it’s costing GM money to maintain the assets, and in addition to some pocket cash they hope to stop the hemmoraging (sp?). The buyer will have to take the liabilities along with the rights and the hardware.
The Chinese group mentioned, “Heavy Industries” (preceded by a string of Chinese names) may have an entirely different market segment in mind for the line.
Any revenue from the sale would be a bonus. The condition for the bailout was that GM would get rid of Hummer, the poster boy for all that’s wrong with the car industry and the US energy consumption.
The Saturn division will generate $0 dollars since it is being shut down. It will cost GM millions to completely get rid of it and honoring the outstanding warranties. The US government is involved in this as well, and they can’t walk away from it the way they did from Daewoo (which they bought) warranty claims.
P.S. To answer Kicho’s concern, the designs the Chinese are buying are those that GM themselves developed, not the H 1 military ones.
initially, this car known as "HMMWV"was made for the army as replacement for the various old military cars. The sad thing this technology is sold to the Chines. Maybe it is true what Lenin stated, when he said that the capitalist will sell the rope that will hung them with. As an emerging power and in direct competition with the US, naturally, they are going to use this technology to their advantage.
That’s what happens when you’re strapped for cash.
Almost 20 years ago…Wang Corporation sold the Wang towers in Chelmsford MA for $535,000. They were estimated to be worth well over $100,000,000. The group that bought the buildings leased them out for a few years then sold them for well over $250,000,000.
Did the Chinese by this line to make money or as some suggest to make a inroad into U.S. auto sales?
Did Hummer ever turn a profit?