(Adds comments from Henderson in fourth and fifth paragraphs,
sale background in sixth paragraph)
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
weren't released. GM would say only that the investor is committed
to continuing to develop the Hummer portfolio and building
alternative-fuel models for the brand at some point.
The buyer "is quite capable of closing," GM Chief Executive
Fritz Henderson said Tuesday in an interview with CBS. He said the
sales will preserve 3,000 U.S. jobs in Hummer factories and
dealerships.
Henderson said the auto maker will communicate with dealers to
ensure they know the brand and will remain open and able to serve
customers.
Former GM CEO Rick Wagoner announced a year ago that GM would
sell Hummer in what would be the first in a string of moves to save
the company as sales plummeted and debt mounted. Once hugely
profitable for GM, Hummer became a liability as fuel prices soared
and auto makers faced pressure to move away from gas-guzzling
SUVs.
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 hadn't found a buyer by early June, Hummer likely would've
been killed in bankruptcy court, The Wall Street Journal reported
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; 248-204-5533
(Tess Stynes and Sharon Terlep of Dow Jones Newswires
contributed to this story.)