The Daily Vedomosti (a combination of The Financial Times, The Wall Street Journal and Russia's Independent Media) says Russian "oligarch" Oleg Deripaska is making a play to purchase GM's HUMMER brand. ABC News repeats the report without providing any further details– save a few salacious facts about the Russian 28-billionaire's unsavory past. In context, of course. "The U.S. State Department revoked his visa in 2005 because they were reportedly concerned he had not been honest about his business dealings. U.S. law enforcement officials reportedly believe he is tied to organized crime. The allegations add a layer of irony to the possible purchase, as the Hummer has been popular with the would-be outlaw set in the United States. Gangsta rappers like now-deceased Tupac Shakur and 'Gangster's Paradise' artist Coolio owned Hummers, as did Christopher Moltosanti, the young ill-fated capo in HBO's The Sopranos." Less culturally aware commentators may remember Deripaska as Magna strongman Frank Stronach's partner in his ill-fated attempt to "liberate" Chrysler from Daimler. Anyway, GM will neither confirm or deny the report. "We haven't announced any of the discussions that have taken place with any outside parties that are interested in the brand," Hummer spokesman Nick Richards announced.
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The current, ongoing US economic meltdown is going to get fixed mostly with foreign money.
That means we will be groveling for cash from our trade deficit overlords (China, India, South Korea and Japan), the world’s energy masters (Middle East and Russia) and those Europeans (who allegedly eat too much cheese and surrender all too often for our tastes) who are eager to dump their now-declining euros to get into dollar denominated assets. It isn’t going to be fixed at home, on our own, without outside help.
We need to be nice to these people, while they still have the money. Get those wire instructions ready, we’re going to need them.
Something about Hummer being bought out by a Russian mobster…
It’s just so… Poetic.
Sounds like he is in the demographic that buys HUMMER vehicles so why would it be a surprise that one of those people would want to buy the whole division?
he may be undesireable, but his money won’t be
I can’t see any downside to this. A “bad boy” division attracts potential suitors that are *gasp* “bad boys”? Bring it on!
GM only questions should be “is that in cash?” or “would you like GMC also?”
Oleg Deripaska already owns just under 5% of the outstanding GM stock – just below the level where he is required to file a statement with the SEC. The guy’s a vulture. It should bother GM that he sees value in something GM seems to think has none.
We’re not talking about a guy who’s just swarmy or underhanded. His money is organized crime money, and in Russia that means blood money. Lived there seen that, it ain’t just the movies, folks.
Cash and Carry. Win, Win.
ALL money in that quantity is blood money. There isn’t a single billionaire on this earth that hasn’t done some shady business. It’s just a matter of appearance, and how many underlings or off shore accounts you can have to separate yourself from the dirty deeds. Is Rick Wagoneer a lesser criminial? Holding hundreds of thousands of peoples employments at hand? What separates an oligarch from the Enron scandal? The Kennedy-clan was founded on bootlegging alcohol. Money doesn’t smell, and if there’s money in this for both sides, the deal will take place. It’s called capitalism.
You like? You buy!
Ingvar: “Is Rick Wagoneer a lesser criminial?”That depends what one thinks of someone that consorts with those who, in order to become a member of their quaint organization, it is necessary to bring the head of their best friend to the meeting. That’s the traditional requirement for admission to the highest levels of the Russian Mafia (aka ‘Blatnoi’).
Somehow, I quite doubt that Rick Wagoneer has friends or business acquaintences of such a nefarious character, whereas Oleg Deripaska almost certainly does.
Ingvar :
ALL money in that quantity is blood money. There isn’t a single billionaire on this earth that hasn’t done some shady business.
The image of Bill Gates and Warren Buffet pistol whipping some poor schlub in a back alley popped into my mind when I read that.
Yes but perhaps Deripaska doesn’t realize that in America big suv brands buy you!
How the world has changed, oh my! The glorious victory of the United States over Soviet Union in the cold war doesn’t look so glorious now. And what about Russians going from the beggar nation to holding Europe and shortly US by its balls with their vast energy reserves. All in less then a generation and in large part due to America being an unrepentant oil addict, still not admitting to its addiction, treating its few ruly visionary leaders (Gore, Carter) like crazies. Now the greatest country in history needs Russian mafia to save what’s left of its ones greatest company? If somebody told me this 20 years ago I would have thought this was too crazy even for a cheap Hollywood movie. Now its reality.
“show me the money!”-the new GM battle cry.
Ingvar :
ALL money in that quantity is blood money. There isn’t a single billionaire on this earth that hasn’t done some shady business.
Behind every great fortune there is a crime.
– Honore de Balzac
Greatest country, beggar nation, blood money, mafia, cold war – are you guys on some kind of political meeting?
Get real!
Hummer brand is not appreciated in the US. People are switching to Cobalts and Civics! Russians like Hummers and want to save the brand and are willing to pay big $$$ – what the problem with that?
I’m confused.
All I read is how completely stupid GM was for even creating the Hummer brand yet now everyone is mad because they believe some Russian crooks will make money with it.
Even I have to admit GM probably knows as much about being in the car business as the Russian Mafia.
Why aren’t we celebrating a chance to stick the “bad guys” with a turkey?
ra_pro :
August 13th, 2008 at 8:41 am
All in less then a generation and in large part due to America being an unrepentant oil addict, still not admitting to its addiction, treating its few ruly visionary leaders (Gore, Carter) like crazies.
First, you’d have to be crazy not to think Gore and Carter are not crazy. Second, and how little oil are you responsible for using? Hum? Oil is what fuels our economy and our high living standard. We can’t go back to living in huts along a river singing “Kum Ba Ya” while worshiping Mother Earth. (sigh)
Anyway, maybe having to run a profitable business might help clean up that Russian, or else is he going to threaten customers to buy a Hummer? That’s actually kind of funny! “I’ll make you a deal that you can’t refuse!”
It looks like a win-win to me. As my dad, who was a Ford dealer, used to say, a sale is a sale.
Airhen,
I take it you are one of those still having wet dreams about your glorious Cold war victory.
Hell… if they pay a billion or so I’d say throw in Saab for free!
Perhaps they could offer him Hummer for an agreement to shoulder a percentage of GM debt? For all the financially savvy types out there, what do you see as the best way GM can broker a deal with this guy, aside from unloading the 800 lb Gorilla?