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GM in talks to sell Hummer to Chinese
Bill Condie12 Feb 2009
A Chinese company is said to be in advanced talks with General Motors over the $100 million (£69.4 million) takeover of Hummer - the fuel-thirsty, four-wheel-drive vehicle modelled on the US military's Humvee.
News of the unnamed bidder's interest came days after it emerged that another big Western carmaker, Volvo, may be sold to the Chinese. Ford is in talks to sell Volvo to Chinese tycoon Li Shufu's Geely carmaking business.
Insiders say a private-equity firm is also involved in the proposed Hummer deal but would not reveal its identity. Negotiations have intensified in recent weeks, they said.
"The Hummer review is progressing and an update is due by the end of the first quarter," said GM spokeswoman Joanne Krell.
GM is desperate to prove it can reform, otherwise it could be forced into a government-funded bankruptcy.
But Hummer is expected to contribute little. "I don't really see a tremendous value," said Dennis Virag, president of Automotive Consulting Group.
Reader views (1)
Shows belief in man made global warming is alive and kicking in China. They know its toilet, we just need to catch up.
- Dave Davies, Basingstoke, 12/02/2009 17:41
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