bankruptcy

"Hummer is a strong brand," says Troy Clarke, president of GM North America, in a statement. "I'm confident that HUMMER will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker."

The sale will save roughly 3,000 related jobs here in the US. According to the statement, "The transaction also includes plans by the investor to aggressively fund future HUMMER product programs." The purchaser and the sale price have not been released at the buyer's request.

The transition from GM to the new owner will be gradual. GM executives say vehicle manufacturing and business services will be contracted to GM for a while to smooth out the acquisition process. For example, "GM's Shreveport Assembly plant would continue to contract assemble the H3 and H3T through at least 2010."

The new owner hopes to capitalize on the globally recognized brand. "The proposed agreement will enable us to continue that growth and maximize the brand's potential through new, innovative off-road vehicles with improved efficiency and alternative fuel powertrains," says James Taylor, HUMMER CEO, in a statement. "Today's announcement is great news for HUMMER's current and future customers, dealers, suppliers and employees around the globe."

In a press conference this morning, CFO Ray Young says a sale of Saturn could also be eminent. In total 16 companies have expressed their interest in purchasing this branch of GM. Three companies have said they are interested in purchasing Saab.

After emerging from bankruptcy, GM will focus all its attention on 4 brands; Chevrolet, Buick, GMC and Cadillac.

Instant Insights /

GM To Sell Hummer, Maybe Saturn, Saab

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