GM announced today that it has entered into a MOU with a buyer for Hummer, which it declined to name.
“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,” GM said in a statement.
The deal is expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at Hummer dealerships. GM said that the future transaction will also include plans by the new investor to aggressively fund future Hummer vehicles.
“HUMMER is a strong brand,” said 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.”
GM said that Hummer will continue to contract manufacturing and other services from GM until a scheduled time period. The H3 and the H3T will be produced at GM’s Shreveport Assembly plant through 2010.
“Other terms and conditions specific to the sale are not being disclosed at this time. Citi acted as financial advisor to General Motors Corporation,” GM said.
– By: Omar Rana