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Hummer Sold, Will Saturn Be Next?

GM CFO outlines plans for new company; may initially withhold financial data.

by on Jun.02, 2009

GM CFO Ray Young: 16 bidders for Saturn, 3 for Saab. The post-bankruptcy GM could go public by 2010, but may withhold financial data until then, Young cautioned.

GM CFO Ray Young: 16 bidders for Saturn, 3 for Saab. The post-bankruptcy GM could go public by 2010, but may withhold financial data until then, Young cautioned.

With a buyer apparently chosen for its Hummer division, General Motors is now turning to Saturn, the once-vaunted brand that it also hopes to sell off as part of its effort to slim down through bankruptcy.  According to GM Chief Financial Officer Ray Young, there are now 16 potential buyers interested in Saturn, with another 3 looking at Saab, the Swedish maker GM also hopes to sell.

As part of yesterday’s bankruptcy filing, the ailing U.S. automaker intends to eliminate all but four of its brands, and along with the hoped-for sale of Hummer, Saturn and Saab, GM will also abandon its once-legendary Pontiac brand.  Meanwhile, the automaker will restructure its vast global empire, starting with the planned sale of a controlling interest in its European subsidiary, Opel, to a consortium headed by the Canadian supplier, Magna International.

“We’re still going to be a global company, but how we’re going to operate as a global company will change,” explained Young, during a 90-minute teleconference with automotive analysts and reporters.

Subscribe to TheDetroitBureau.comThe sale of Hummer was announced a few hours before the call, but Young declined to reveal the name of the buyer.  As reported, this morning, it appears the new owners will consolidate operations, which would mean some overseas production would be brought back to a Hummer plant in Shreveport, Louisiana, from the current site in South Africa.

How soon an announcement on Saturn and Saab will be made is uncertain.  The decision to sell the latter brand was not unexpected and, in fact, was long called for by industry analysts worried about GM’s deteriorating situation.  But the move to abandon Saturn is another matter entirely. (more…)

Hummer Sold; Production to Return to U.S.

Buyer yet to be named; Taylor to stay with Hummer after sale.

by on Jun.02, 2009

GM has confirmed it has a buyer for Hummer but is withholding its name. The automaker will bring back H3 production from S. Africa and concentrate it in Shreveport, LA.

GM confirms it has an unamed Hummer buyer. The automaker will bring back H3 production from South Africa to Shreveport, Louisiana.

General Motors has officially reached an agreement to sell its Hummer off-road brand to a yet-to-be named buyer. The term sheet signing was announced by GM in a press release early Tuesday.

The move is expected to be a boon to workers at a GM plant in Shreveport, Louisiana, who will be picking up production work currently handled at a factory in South Africa.

“GM has signed a memorandum-of-understanding with an investor,” Hummer spokesman Nick Richards told our associates at “Both parties have agreed to the basic terms [of the purchase] but the financial details and buyer’s name are not being released at this time. That’s expected to be announced some time in the near future.”

Richards said the buyer meets all of GM’s criteria to purchase and operate the Hummer brand’s civilian truck production: They have a proven track record in international business; they know the Hummer brand can perform better globally; and they have a long-term development plan and are willing to invest in future products. (more…)