DOW JONES NEWSWIRES
General Motors Corp. (GMGMQ), fresh off filing for bankruptcy
protection Monday, announced the tentative sale of the Hummer
brand, part of its plan to emerge as a leaner, more-competitive
auto maker.
GM has been studying strategic alternatives for the brand for a
year, and has settled on a buyer that could take over the brand by
the end of the third quarter.
As expected, the identity of the purchaser and financial terms
were not released. GM would only say the investor is committed to
continuing to develop the Hummer portfolio and build
alternative-fuel models for the brand at some point.
The auto maker will continue producing Hummer H3 and H3T trucks
and SUVs at some of its U.S. plants for the buyer through at least
next year.
GM had, until recently, been entertaining offers for Hummer from
various parties, including a Chinese investor. Bids were in the
sub-$500 million range.
If GM had not found a buyer by early June, Hummer would likely
have been killed in bankruptcy court, the Wall Street Journal
reported on Monday. GM found an investor for its Opel brand over
the weekend - Magna International Inc. (MGA) - and is seeking
buyers for Saturn and Saab.
-By John D. Stoll, The Wall Street Journal
(Tess Stynes of Dow Jones Newswires contributed to this
story.)