The fate of the Hummer brand is now hanging by a slender thread after General Motors Corp. rejected eight separate offers for the brand and ordered employees working on Hummer to wind down the group’s operations.
Until a few weeks ago, it looked like Hummer, one of four brands GM planned to abandon after its emergence from bankruptcy, would find a new home.
The Chinese truck maker, Sichuan Tengzhong Heavy Industrial Machinery Corp., had tendered an offer – but one it couldn’t win final approval for from regulators in Beijing.
On February 24th, GM announced it would begin phasing out Hummer, though it left the door open to finding an alternative buyer, much the same way a white knight emerged to save another one of the four brands, Sweden’s Saab. According to a memo prepared on March 5, eight offers have since been fielded.
“Unfortunately there were no qualified or capable candidates. Consequently, we are immediately pursuing the wind-down of the Hummer Brand. In other words there is no more slow winddown it really is wind-down of Hummer,” according to a memo signed by Matthew Koch, from the Hummer Deal Execution Team.