General Motors reportedly contacting previous bidders of Hummer brand

02 March 2010

Despite earlier reports that General Motors plans to shut down the Hummer brand after failing to secure a sales deal with a Chinese company, there are rumours spreading that the company is turning to previous bidders.

Despite earlier reports that General Motors plans to shut down the Hummer brand after failing to secure a sales deal with a Chinese company, there are rumours spreading that the company is turning to previous bidders.

Asia One reported that General Motors has been attempting to reach bidders whose offers for the sports utility line were rejected last year after a deal was settled to sell the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery.

A source, who did not wish to be indentified, stated that the company has contacted at least four Chinese companies to weigh in their interest. Two buyers had expressed their interest in acquiring only part of Hummers assets last year, while the others had offered to purchase the brand.

The report came after General Motors announced last Wednesday the closure of the Hummer brand after the aborted $150 million deal with Tengzhong. However, General Motors said that it would still accept offers as the shutdown begins.

Industry analysts stated that it is improbable for a Chinese buyer to purchase the entire brand, but an acquisition of part of its assets is possible.

It would be advantageous for some Chinese businesses to acquire some of the companys assets in order to increase the competitiveness of their products on the international market. Last year, Beijing Automotive Industry Holding Corporation acquired $200 million worth of old Saab model designs before the Dutch sports car manufacturer Spyker moved to purchase the remainder of the Saab brand.

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