Reports Suggest New Bidders Emerge for Hummer Brand
General Motors revealed yesterday was that it was unable to complete the sale of Hummer to Sichuan Tengzhong, but according to reports, GM may still be able to find a buyer for the brand.
The Wall Street Journal says that GM is still looking at two separate offers for Hummer. The two remaining suitors reportedly submitted bids earlier in the sale process, but were both rejected in favor of the Sichuan Tengzhong deal. Now that that deal has fallen through, insiders suggest the automaker is taking a second look the previous bids.
Identities of the bidders are still unknown, but it's likely at least one is a private equity firm, as it was reported that several such organizations were interested in the brand when bidding began in 2009. Given the legal hurdles Tengzhong faced during the purchase process, it's unlikely that either bidder is a Chinese firm. Previous reports suggested one leading bidder was located in the U.S., while the other was a foreign firm.
Although Hummer still has a chance of being rescued, the prospects of its salvation are uncertain. Saturn was terminated after a deal to sell the brand to Roger Penske fell through, but Saab -- which was approaching death after Koenigsegg reneged on its purchase agreement -- was rescued by Spyker Cars N.V. at the last minute. If GM still can't find a buyer for the Hummer line, the brand will continue to be wound down.
Source: The Wall Street Journal