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MoU entered with the buyer of Hummer: GM |
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July 08, 2009 |
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New York, 08 July 2009: General Motors Corporation announced that it has entered into a Memorandum of Understanding (MoU) with a buyer for its premium off-road brand - Hummer. This transaction is the result of GM's strategic review of the Hummer brand and the company’s ongoing restructuring efforts.
The sale is expected to close by the end of third quarter of this year and is subject to customary closing conditions, including receipt of applicable regulatory approvals.
The deal is expected to secure more than 3,000 U.S jobs in manufacturing, engineering and at Hummer dealerships around the country. The transaction also includes plans by the investor to aggressively fund future Hummer product programs. Under terms of the MoU, the identity of the purchaser and proposed financial terms of the agreement are not being released at this time.
“Hummer is a strong brand,” said Mr.Troy Clarke, President of GM North America. "I’m confident that Hummer will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker."
As part of the proposed transaction, Hummer will continue to contract vehicle manufacturing and business services from GM during a defined transitional time period. For example, under the proposed agreement, GM’s Shreveport Assembly plant would continue to contract assemble the H3 and H3T through at least 2010.
"GM has developed Hummer into a globally recognized off-road brand,” said Mr.James Taylor, Chief Executive Officer of Hummer.
“The proposed agreement will enable us to continue that growth and maximize the brand’s potential through new, innovative off-road vehicles with improved efficiency and alternative fuel powertrains. It is great news for Hummer’s current and future customers, dealers, suppliers and employees around the globe”, he added.
Other terms and conditions specific to the sale were not disclosed.
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