Three Bidders May Be Interested in HUMMER
04-09-2009, 11:07 AM
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Three Bidders May Be Interested in HUMMER Three bidders remain in Hummer auction-sources
Wed Apr 8, 2009 6:38pm EDT
NEW YORK, April 8 (Reuters) - Three bidders remain for General Motors Corp's (GM.N) Hummer brand, two sources with knowledge of the matter said, adding that current offers range from $100 million to $200 million in cash, in addition to other commitments.
None of the bidders are automakers. One bidder is from the United States and the other two are from overseas, the sources said, adding that the bidders include private equity and wealthy individuals
The sources declined to be identified because the details of the auction are not public.
Under the terms being discussed for the Hummer sale, a buyer would take over GM's liabilities for its 125 U.S. Hummer dealers and commit to further investments in areas such as engineering, marketing and sales, the sources said.
GM's plant in Shreveport, Louisiana, which makes the Hummer H3, will not be part of the deal, the sources said. Instead, GM will continue making the H3 there and will supply the vehicles to the new owner.
GM has recently hired an engineering firm to prepare an investment plan for future Hummer models to submit to the remaining bidders for their consideration in shaping final proposals, the sources said.
Wed Apr 8, 2009 6:38pm EDT
NEW YORK, April 8 (Reuters) - Three bidders remain for General Motors Corp's (GM.N) Hummer brand, two sources with knowledge of the matter said, adding that current offers range from $100 million to $200 million in cash, in addition to other commitments.
None of the bidders are automakers. One bidder is from the United States and the other two are from overseas, the sources said, adding that the bidders include private equity and wealthy individuals
The sources declined to be identified because the details of the auction are not public.
Under the terms being discussed for the Hummer sale, a buyer would take over GM's liabilities for its 125 U.S. Hummer dealers and commit to further investments in areas such as engineering, marketing and sales, the sources said.
GM's plant in Shreveport, Louisiana, which makes the Hummer H3, will not be part of the deal, the sources said. Instead, GM will continue making the H3 there and will supply the vehicles to the new owner.
GM has recently hired an engineering firm to prepare an investment plan for future Hummer models to submit to the remaining bidders for their consideration in shaping final proposals, the sources said.
04-09-2009, 11:08 AM
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HUMMER Bidders Offer Pocket Change
By Robert Farago
April 9, 2009
Reuters would have us believe that it has “sources” close to GM’s federally mandated sale of its boat anchor brand: HUMMER. “Three bidders remain for General Motors Corp’s Hummer brand, two sources with knowledge of the matter said, adding that current offers range from $100 million to $200 million in cash, in addition to other commitments. None of the bidders are automakers. One bidder is from the United States and the other two are from overseas, the sources said, adding that the bidders include private equity and wealthy individuals.” Folks, let history be our guide.
In 1994, BMW bought the Rover brand from British Aerospace for about a billion dollars. Despite Honda’s technological assistance, BMW lost a couple of billion more. In May 2001, BMW paid the Phoenix Consortium £500m (and all Rover’s remaining inventory) to take their English patient off their hands. John Tower’s mob lost £254m in their first year. They eventually sold Rover to China’s Nanjing Auto and SAIC for sweet FA. Who then exported the company’s tooling to the PRC where they built cheap Rover clones. And then. . . nothing.
To think GM will get any real money for HUMMER—without paying someone to take it off their hands (watch the fine print)—is patently absurd. At best, they could find some sucker who wants the name. Someone like. . . Ford. Who, in 2006, paid BMW $10m for the Rover name.
By Robert Farago
April 9, 2009
Reuters would have us believe that it has “sources” close to GM’s federally mandated sale of its boat anchor brand: HUMMER. “Three bidders remain for General Motors Corp’s Hummer brand, two sources with knowledge of the matter said, adding that current offers range from $100 million to $200 million in cash, in addition to other commitments. None of the bidders are automakers. One bidder is from the United States and the other two are from overseas, the sources said, adding that the bidders include private equity and wealthy individuals.” Folks, let history be our guide.
In 1994, BMW bought the Rover brand from British Aerospace for about a billion dollars. Despite Honda’s technological assistance, BMW lost a couple of billion more. In May 2001, BMW paid the Phoenix Consortium £500m (and all Rover’s remaining inventory) to take their English patient off their hands. John Tower’s mob lost £254m in their first year. They eventually sold Rover to China’s Nanjing Auto and SAIC for sweet FA. Who then exported the company’s tooling to the PRC where they built cheap Rover clones. And then. . . nothing.
To think GM will get any real money for HUMMER—without paying someone to take it off their hands (watch the fine print)—is patently absurd. At best, they could find some sucker who wants the name. Someone like. . . Ford. Who, in 2006, paid BMW $10m for the Rover name.
04-09-2009, 12:13 PM
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GM Blows Hummer Deal
By Bertel Schmitt
April 9, 2009
GM had promised to have a decision by the end of March on whether it would sell or fold Hummer. They missed that deadline, along with other key targets set by the White House-appointed autos task force. Not that there wasn’t interest in the aptly named pornography-on-wheels. GM simply, well, blew it.
The Hummer brand could have been sold in March, but GM managed to fornicate even that up, Reuters reports. They say, an industrialist from Kentucky had offered GM $100m in cash for Hummer, along with an investment commitment of another $100m. Most importantly, the obviously nutty or filthy rich Kentuckian offered to assume GM’s franchise agreement liabilities with Hummer dealers, estimated at about $350 million. The bidder, owner of several companies that supply parts to the auto and aerospace industries, had put together plans for new powertrain options for Hummer, including a hybrid version of the H3 that would double the Hummer’s “fuel economy.”
Did GM sing hallelujah, jump at the offer and go on to solving more pressing matters? Of course not. GM wanted another $100m in cash, and after not receiving it, walked away from the deal.
To this day, Hummer is still for sale, as reported by RF. Reuters says three bidders are still in the running, and the deals being discussed have less sugar content than the one from Kentucky: Offers range from $100m to $200m in cash, “in addition to other commitments.”
GM’s plant in Shreveport, Louisiana, which makes the Hummer H3 and the H3T pickup, will not be part of the deal. Instead, GM wants to continue making the vehicles there and will supply them to the new owner. Their sugar daddies in DC may not like this, as they are putting GM “under pressure to simplify its vehicle line-up and streamline its engineering efforts,” Reuters says.
By Bertel Schmitt
April 9, 2009
GM had promised to have a decision by the end of March on whether it would sell or fold Hummer. They missed that deadline, along with other key targets set by the White House-appointed autos task force. Not that there wasn’t interest in the aptly named pornography-on-wheels. GM simply, well, blew it.
The Hummer brand could have been sold in March, but GM managed to fornicate even that up, Reuters reports. They say, an industrialist from Kentucky had offered GM $100m in cash for Hummer, along with an investment commitment of another $100m. Most importantly, the obviously nutty or filthy rich Kentuckian offered to assume GM’s franchise agreement liabilities with Hummer dealers, estimated at about $350 million. The bidder, owner of several companies that supply parts to the auto and aerospace industries, had put together plans for new powertrain options for Hummer, including a hybrid version of the H3 that would double the Hummer’s “fuel economy.”
Did GM sing hallelujah, jump at the offer and go on to solving more pressing matters? Of course not. GM wanted another $100m in cash, and after not receiving it, walked away from the deal.
To this day, Hummer is still for sale, as reported by RF. Reuters says three bidders are still in the running, and the deals being discussed have less sugar content than the one from Kentucky: Offers range from $100m to $200m in cash, “in addition to other commitments.”
GM’s plant in Shreveport, Louisiana, which makes the Hummer H3 and the H3T pickup, will not be part of the deal. Instead, GM wants to continue making the vehicles there and will supply them to the new owner. Their sugar daddies in DC may not like this, as they are putting GM “under pressure to simplify its vehicle line-up and streamline its engineering efforts,” Reuters says.
