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 [sic] 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 £500 million (and all of 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 $10 million for the Rover name.
I believe Ford bought the Rover name in order to protect the Land Rover/Range Rover brand rather than to actually build Rovers themselves. This, to me, seems like a sensible move. As far as i know, the Indians subsequently acquired the Rover brand when they purchased Land Rover.
Edit: See dwford’s comment below for a more informed explanation!
Tonka Toys could be a bidder…
When Ford bought Land Rover, they had an option to buy the Rover name. When Nanjing bought the Rover designs and tooling, they intended on reviving the Rover brand. Ford didn’t want a cheap Chinese brand in any way associated with Land Rover, so they exercised the option to buy the Rover name. Hence Rover became Roewe in China.
The Hummer name could be successful on a line up of real off road sport utilities a la Jeep and Land Rover.
1. Give it all to AMGeneral.
2. Give Chrysler to AMGeneral.
3. AMGeneral has Chrysler change it over to Chrysler drivetrain.
4. Chrysler shrinks down to Dodge trucks, Jeep, and Hummer.
5. Chrysler lives on as a niche producer with long product cycles using low volume-high utilization factories.
6. Dodge Brothers smile; Life is good.
I can’t imagine why in today’s environment anyone would invest (and by God I use the term loosely) in Hummer. Chrysler will go tits up, and there will be a brand with legit offroad brand equity that, with the right vehicles, could be sustained. Hummer’s only brand equity is of an offroad poseur brand as well being a rolling testament to GM’s stupidity.
Whether it has any value at all depends on what Hummer means.
What intellectual property is involved?
What factories/capital are involved?
What’s the deal with the remaining dealership network?
There are no Hummer factories. The H1 is dead. The H2 is built under contract by AM General using Tahoe parts. The H3 is built in Louisiana along with the Colorado/Canyon on platform that GM licensed from Isuzu. All the engines are shared GM engines.
If GM requires the buyer to continue buying engines from GM, to continue using AM General to make the H2, and is not able to transfer the rights to the H3’s Isuzu platform then Hummer is completely worthless.
On the other hand, if Hummer comes with complete rights to the Hummer designs and engines then I can see an Indian or Chinese company being very interested.
CarPerson:
While AM General does contract assemble the H2 I seriously doubt that they would have any interest in acquiring the brand, even for free. They are in business to make money, not lose it.
Just as long as I get to buy an H3 someday.
Even if its called the Chevy Blazer
carperson- what happens to the vans? Chryslers best selling vehicles
The GMT355 was not licensed from Isuzu, it was a joint design.
Sounds like anti D3 brand zombies just want the D3 apparently unable to engineer even the simplest car platforms. You know, because they’re all run by retarded people who are unable to perform the simplest of tasks. Just look at any of the Chrysler reports and see how many people claim that everything was created by Daimler.
I love how people here want only 1-3 types or brands of cars available for sale. Everything different is CRAP or a POS!
If someone offers them a dollar to take Hummer’s name, they really just need to take it.
None of the bidders are automakers.
According to P. De Lorenzo the top bidder is an automaker (Mahindra?).
davey49:
The GMT355 was mostly designed by Isuzu; I have no idea what the exact agreement is, but Isuzu might not be very pleased with an Indian or Chinese firm getting its hands on the platform.
GM’s own GMT360 (i.e. Trailblazer/9-7x) platform is much better anyway. Why on earth would you want an H3 when you can go an get one of the many varieties of the better designed, better built GMT360 on fire sale right now.
I could see Hummer working for Mahindra.
They already been kicking the tires on the US market and were nearing entry with a small diesel pickup and SUV when the Depression 2.0 hit. Putting a Hummer grille on their offerings and having a ready dealer network would give them a leg up on starting from scratch.
“GM’s own GMT360 (i.e. Trailblazer/9-7x) platform is much better anyway. Why on earth would you want an H3 when you can go an get one of the many varieties of the better designed, better built GMT360 on fire sale right now.”
It looks better than a Jeep and I want an off roader. I like the TB but thats more of a highway vehicle.
I’ll never be able to afford any of these anyway.
Can’t even afford a diecast model of a H3
I’d also love an LR3(4?)but I’d have to win a lottery.
Perhaps in 2015 I’ll be able to get a 2009 H3 Alpha to go along with my lightly used Mustang
davey49 :
April 9th, 2009 at 11:12 am
I love how people here want only 1-3 types or brands of cars available for sale. Everything different is CRAP or a POS!
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You made a mistake. It’s not “everything (from GM) different is CRAP.” It’s “everything (from GM) is CRAP.”
These craps now live on my tax dollars. Isn’t it natural for a tax payer to want to narrow down the brands of craps that they produce, hoping that would minimize my cost?
What doesn’t GM just pay back my tax dollar with interest in full? Then they can have a zillion brands and I will shut up.
wsn- nope, don’t care about your taxes, or mine.
Plus ultimately I want every brand that exists in the world to be sold in the US. That includes all the brands that aren’t sold here now. I want a choice of at least 20 different cars in each possible segment.
“You made a mistake. It’s not “everything (from GM) different is CRAP.” It’s “everything (from GM) is CRAP.””
You added in the GM part, I didn’t. Look how many people claim the Ridgeline and Element are POS-CRAP!
On other forums, the Toyota Venza is CRAP!
Like I said, everything different from the established “enthusiast” norm is CRAP!
Very few cars are total crap, I’d say only the YUGO, and the Daewoos mentioned in the other article would qualify in my recent experience. From back before I started driving I’d say the British Leyland cars were CRAP.
Compared to those, the hated Sebring, Aveo and Compass are world class.
davey49 :
April 9th, 2009 at 3:09 pm
wsn- nope, don’t care about your taxes, or mine.
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Good thing you don’t care. Please pay my tax from now on.
I’m with wsn. My tax dollars are paying for car companies I don’t buy from; past, present, and probably future. I’ve always thought American cars were crap, save Jeep… mmmaybe. Between Ford using coffee cans for mufflers, GM’s razor sharp plastic interiors, combined with Chrysler’s Minivan or nothing lineup, I believe this country’s auto lineup has become a plethoric joke.
Since my childhood, I’ve always had a passion for the Europeans engineering and even the Asians reliability. I was under the impression that too many brands was a key factor in GM’s situation. I can only imagine what having every World brand available for sale would be like, especially after they started acquiring each other after a few years. (Can anyone imagine 9 Crown Vic sibling lineups? Or is it a Grand Marquis?)
For those “BUY AMERICAN” cry-babies: How do you call a car manufactured from Mexican parts and assembled predominately by a robot in Michigan, American???
Maybe it’s the new math.
FlyGuy25, you have a passion for Asian reliability? Good lord, of all the Asian aspects one could have a passion for…