Hummer to be phased out or sold by March 31st of this year.

[Paul Gagnon]

I'm watching the press conference.

[Bebe]

Where?

[Paul Gagnon]

Originally Posted by Bebe

Where?

It was the press conference by the CEO of GM outlining their turnaround plan for the bailout money.

[Bebe]

Got it....c-span

[Paul Gagnon]

http://www.treasury.gov/initiatives/...turingPlan.pdf

Brands and Channels—The Company has committed to focus its resources primarily on
its core brands: Chevrolet, Cadillac, Buick and GMC. Of the remaining brands,
Pontiac—which is part of the Buick-Pontiac-GMC retail channel—will be a highly
focused niche brand. Hummer and Saab, stand-alone retail channels and brands, are
subject to ‗strategic reviews‘, including their potential sale. A Hummer sale or phase out
decision will be made in Q1 2009, with final resolution expected for both no later than
2010. Saturn will remain in operation through the end of the planned lifecycle for all
Saturn products (2010-2011). In the interim, should Saturn retailers as a group or other
investors present a plan that would allow a spin off or sale of Saturn Distribution
Corporation (SDC), GM would be open to any such possibility. If a spin off or sale does
not occur, it is GM‘s intention to phase out the Saturn brand at the end of the current
product lifecycle.

[Bebe]

Here's Reuters:

GM needs up to $30 bln in aid to avoid failure
Tue Feb 17, 2009 6:08pm EST
By Kevin Krolicki

DETROIT, Feb 17 (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) said on Tuesday it could need a total of up to $30 billion in U.S. government aid -- more than doubling its original aid -- and would run out of cash as soon as March without new federal funding.

The request for additional aid from the top U.S. automaker came in a restructuring plan GM submitted to U.S. officials on Tuesday.

The GM restructuring plan of more than 100 pages was posted on the U.S. Treasury Web site.

The request came on the same afternoon that No. 3 U.S. automaker Chrysler requested an additional $5 billion from the current $4 billion in U.S. government aid, saying it expected the brutal downturn in the U.S. market to run another three years.

GM also said it had not reached deals with bondholders and its major union to reduce some $47 billion in debt but would work to reach those agreements by the end of March.

In response to signs of a prolonged slump in demand for new cars and trucks, the automaker also said it would step up cost-cutting, reducing its global workforce by 47,000 jobs this year and cutting five additional U.S. plants by 2012.

In addition, GM said it would cut its U.S. workforce by another 20,000 jobs by 2012 with most of those reductions coming earlier.

GM has been kept afloat since the start of the year with $13.4 billion in loans from the U.S. Treasury. Its expanded aid request for up to $30 billion includes a $7.5 billion credit line in the event that the autos market remains depressed.

Critics of the bailout of GM and its smaller rival Chrysler LLC have urged the government to consider financing a court-supervised restructuring for the two ailing automakers in bankruptcy.

GM said its own analysis of the costs and risks of a bankruptcy filing would require more than $100 billion in financing that could have to be provided by the U.S. government.

GM requested an unprecedented U.S. government bailout in December and had pegged its funding need then at up to $18 billion.

But the automaker has faced a deep slide in sales outside its long-slumping home market in the weeks since and GM said its revised restructuring plan would take aim at loss-making overseas units as well.

GM also said it would plan to phase out its Saturn brand by the end of 2011 and make a decision on whether to sell or just wind down its Hummer SUV brand by the end of the current quarter. (Editing by Matthew Lewis)

Well it looks like we are still waiting for the other shoe to drop

So I guess if it doesn't sell by 3/31/09, they will phase it out. 1 year, 2 years?

That's the question.


Source Link:
http://www.reuters.com/article/bonds...47593820090217

[Paul Gagnon]

I'd like to see AM General buy Hummer but my gut tells me it would be Tata or Mahindra or someone like that. If anyone at all.

[BigKofJustice]

Well worse case, AM General is unaffected by all of this so you'll still see H1 support continue for some time...[until the HMMWV contract expires which is 2020-2030 window] Believe it or not they still roll out new products and upgrades for H1 owners, even though its a "dead" product. Their support is awesome, nothing like having an AM general floor engineer calling you with a hard to find part that isn't listed in the parts book

Fortunately AM General was smart and kept the Humvee(tm) trademark/brand while selling Hummer.

I saw no point to the H2, as the original Hummers/H1's were cheaper or as cheap as an H2 for the first few years of production. The H2 should have been priced lower, as is the H3.

Uncle sam buys bare bones diesel M998A2's for 32,000$ ea. Give me one of those

[Bo185]

I don't see anyone buying the brand Hummer and having to spend billions to change things, since the H2/H3 are fully integrated with other GM products. IE platforms and engines.

I doubt it survives.

Saturn on the other hand being a basically independent would be more likely sell plus it has a larger more appealing product line (cars).

[PTSchram]

Originally Posted by Paul Gagnon

I'd like to see AM General buy Hummer but my gut tells me it would be Tata or Mahindra or someone like that. If anyone at all.

Tate doesn't even know if they have enough cash to swing the deal for Jaguar/Land Rover, much less enough to buy another complete line. Mahindra is in up to their necks with International/Navistar.

Chinese maybe?

[Timgco]

If GM kills the HUMMER Name off (and they will) it sounds like production is done anyhow...I wonder if the platform will offer a "bowtie like H2 and H3."

I can;t see how another company would pick up the name and run with it since these four trucks have so many GM parts bin components in them.

Is it possible that another company will just allow GM to bduild for them while the name is CO-owned by the new Company?

The other thought I have on this is that the brand will continue overseas only. I'm thinking of when the Defender 90 left the US back in 97. THey still produce the 100 and 90 series trucks over the pond.

I guess if I'm going to get into another H2, I'd better do it soon.

[crashhawk]

The Hummer is an American icon, just like the Mustang or Corvette. It's always sad to see something of that importance to die off.

[forsakenfuture]

I guess,i dont mean to make anyone angry but it seems like it would have to be around alot longer before it became an American Icon.

[redranger4.0]

Originally Posted by forsakenfuture

I guess,i dont mean to make anyone angry but it seems like it would have to be around alot longer before it became an American Icon.

Yea the Humvee might be an icon but Hummer its self sure as hell isnt.

[Andy351]

well designed and quality are terms the american consumer is still baffled by.

[DarkXJ]

I've always been a fan of the Hummer brand. Not too in love with the H2, I don't like the looks of it, but can't argue with it's capabilities stock. As far as people not wheeling it? It's a friggin $60k SUV! How many people take their brand new luxury SUVs out wheeling? Price-wise, it's in line with the competition. Navigator, Escalade, even Land Rover. The difference being that it's actually wheelable. Unlike a Land Rover, the H2 has actual tires under it. The H3 is pretty close to a JK Unlimited pricewise, when you compare Rubi to Adventure. The H3 starts about $2k more in that comparison. But, it comes with 33s to the JK's 32s, a 4:1 t-case like the JK, electric lockers f/r since 2008 (I think) like the JK, e-locker rear before that. The price difference really comes in when you add in options. The H3 is more of a luxury ride than a Wrangler, so it has more options, and they cost more. Don't get too crazy on options and you can get a vehicle that will take you just about anywhere a JK will but still be a nice ride to go to work/dinner in.

I'm a Jeeper, and I'll never understand the Jeep hatred of Hummer. I'd kill for an H3T Alpha with the Adventure package...

[WallyP226]

I hope that the Hummer product lives on regardless of the image,or use. Why? Because it keeps Americans working and it also gives us an export, IMO thats far more important than an opinion on what flavor one wheels. I hope the unions and Hummer leadership can keep it afloat.

Wally

[4Mogger]

Originally Posted by WallyP226

I hope that the Hummer product lives on regardless of the image,or use. Why? Because it keeps Americans working and it also gives us an export, IMO thats far more important than an opinion on what flavor one wheels. I hope the unions and Hummer leadership can keep it afloat.

Wally

If the unions have anything to do with it-- there will be no "floating."
Hopefully a successful manufacturer will buy the brand and build on it.

[WallyP226]

American exports are American exports, some Hummers are better than no Hummers. It matters to the guy that still has a job.

Hummer is international, they don't sell as many as Ford or Chevrolet, IMO thats no a good enough reason to wish their demise.

http://www.hummer.com/#/


Wally

[Bebe]

A little birdie told me that a sale is imminent, and that there will be minimal disruption to dealerships.

[jasonmt]

GM reported sales of what, barely over 1000 hummers in February 2009?

• It sounds like Hummer dealers are "minimally disrupted" by having vehicles sell.
• With those kind of sales figures Hummer would not seem to be an attractive purchase from either the consumer or corporate level...

[Bebe]

Originally Posted by jasonmt

GM reported sales of what, barely over 1000 hummers in February 2009?

• It sounds like Hummer dealers are "minimally disrupted" by having vehicles sell.
• With those kind of sales figures Hummer would not seem to be an attractive purchase from either the consumer or corporate level...

Lack of sales would be predictable when every news paper in the world is running "the Hummer is dead" articles.

Sales will increase when the brand is sold.

I have a few sources that tell me that it's not that there is no interest, there is no financing.

One told me they could sell 4 or 5 a week if they could finance them. And scores of over 700 are being passed on. The banks want higher down payments (20-30%), lower debt ratios, and scores of 750 or higher.

[slw2run]

GM's Hummers could have a foreign buyer , at this time GM has said it needs $2 billion by the end of March to keep its door open!

[Goldie Locks]

I'm really going to miss seeing them on the trail and at the mall. They were really hard core. Like Harleys, mostly tough guys drove them. H2 H3 RIP......

[BigKofJustice]

Originally Posted by jasonmt

GM reported sales of what, barely over 1000 hummers in February 2009?

• It sounds like Hummer dealers are "minimally disrupted" by having vehicles sell.
• With those kind of sales figures Hummer would not seem to be an attractive purchase from either the consumer or corporate level...

GM should have thought of that before writing a check to AM General. Before GM got involved, I believe 1000-1,200 units a year was a record number for Hummer.

RE: Hummer sale

-It'll go to a truck manufacturer [ Foreign, or domestic [ie. Navistar/AM General again]] for a lowball price if GM is that desperate for cash.

-Or GM may value sinking the Brand more than making 100-300 million in a bid to score political points by saying "We killed Hummer, see we can change, please give us a handout".

Most of the dealers who wanted out [and Saw hummer as a way to make a quick buck selling H2's] are already gone. Theres a number who are taking the wait and see approach, especially those with established service customers. Retails sales is one arm on making money, servicing vehicles is another.

We'll know soon enough.