General Motors Begins Hummer Wind Down
Since it was unable to find a buyer for the Hummer brand, General Motors is escalating the wind-down of its SUV division.
Last month, GM and Sichuan Tengzhong Heavy Industrial Machinery failed to strike a deal to sell the Hummer line to the Chinese company, but the Detroit automaker left the bidding open for 11th-hour offers. Since then, GM has decided to shutter the brand and wind down its operations.
This will affect nearly 153 dealerships across North America, all of which have signed wind-down agreements with GM. Hummer owners looking for service will likely be directed to their nearest Cadillac dealers once the Hummer network is no more.
"This is for real," Will Churchill, a dealer in Texas, told Automotive News. "I cried big crocodile tears."
To expedite the sale of the 2200 vehicles left on dealer lots, GM is putting some substantial cash on the hood of H2 and H3 models. 2010 H3 and H3T models will be subject to $4000 in rebates, while 2009 H3Ts get $5000 off. All remaining 2009 H3 and H2 inventory is eligible for a $6000 rebate. On top of the rebates, GM is also offering zero-percent financing for up to 72 months. Expect these deals to last through the end of April.
We've yet to hear any details on Hummer's employees, but there is a good chance that many will be shuffled to new positions within GM. That said, CEO Jim Taylor announced his retirement, effective immediately.
Want to see the rise and fall of Hummer? Read our timeline of the beleaguered brand here.
Source: Automotive News (subscription required)