GM Has a Buyer for Hummer Brand
General Motors has lined up a buyer for its Hummer SUV brand, the Detroit automaker announced Tuesday.
The sale is expected to close by the end of September, and requires regulatory approval. Neither the buyer nor the selling price was identified.
Selling off the off-road brand is part of GM's restructuring plan. The company is refocusing itself on four key U.S. brands. It also hopes to sell off Saab and spin off Saturn. Pontiac is being phased out.
The announcement comes one day after GM filed for bankruptcy reorganization, a process the company hopes will allow it to quickly spin off its good parts into a new GM and leave behind bad parts in the bankruptcy process.
As part of the Hummer deal, GM has agreed to provide contract manufacturing and business services for a transitional period. It will continue building the H3 SUV at its Shreveport assembly plant through at least 2010.
"Hummer is a strong brand," Troy Clarke, GM North America president, said 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."
GM said the deal is expected to save 3,000 U.S. manufacturing, engineering and dealership jobs.
The buyer is expected to "aggressively fund future Hummer product programs," the company added.
Citi was GM's financial adviser on the deal.