General Motors reportedly close to selling Hummer for $150 millionFri, 09 Oct 2009 00:00:00 -0700
General Motors Co., working to cut its U.S. brand count in half as part of its restructuring, is trying to complete a deal to sell Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery Co. for about $150 million, Bloomberg News reported Thursday.
The companies hope to make a deal today or tomorrow for the SUV brand, Bloomberg said, citing three unnamed sources.
GM said in June that it expected to sell Hummer to the Chinese heavy machinery maker, which has no experience in the auto industry.
Hummer spokesman Nick Richards declined to comment. A source close to the sale said GM expects it to close "any day."
GM had estimated in the summer of 2008 that the sale of Hummer “might realize $500 million or more,” CEO Fritz Henderson said in documents filed during the automaker's 39-day bankruptcy.
GM also had an agreement to sell its Saturn brand to Penske Automotive Group, but that deal fell through last week after Penske's arrangements to get vehicles from Renault SA did not receive approval from Renault's board. GM now is winding down Saturn and its dealer network.
GM also has an agreement to sell its Swedish Saab brand to supercar maker Koenigsegg AB. Koenigsegg has said it expects to finish the deal by the end of this month.
GM is also dropping its Pontiac brand and maintaining Chevrolet, Buick, GMC and Cadillac.
By Chrissie Thompson and Jamie LaReau- Automotive News