Amid reports of an auto sales crash in May, GM announced plans to scale back SUV production, and CEO Rick Wagoner told reporters that the General would consider selling its Hummer brand. The Los Angeles Times quoted Wagoner as saying, "At this point, we are considering all options for the Hummer brand. Everything from a complete revamp of the product lineup to partial or complete sale of the brand."
But who, in a world of $4 gas, would want it?
Edmunds Inside Line reports, "Reports from both the India Times and Automotive News indicate that Indian automakers Tata and Mahindra & Mahindra have both been approached about potentially acquiring Hummer from General Motors."
Tata motors recently purchased both Jaguar and Land Rover, giving an Indian automaker an entry into the U.S. market for the first time.
Motor Trend comments, " With the brand's sales down 36 percent from 2007 and automakers scrambling to meet stricter CAFE standards in 2012, U.S. and Japanese companies have shown little interest in the maker of the H2 and H3, and GM may hope that their Indian counterparts will be tempted by a brand with international recognition." However, since Tata is already in possession of Land Rover, adding Hummer to its stable would seem to make little sense. Mahindra & Mahindra, however, plans to sell a compact SUV stateside in 2009, and could possibly benefit from purchasing the brand."
Autoblog notes that "Mahindra…will be bringing its diesel-powered Appalachian pickup to the U.S. market by the end of 2009." It might make sense for Mahindra to purchase a brand that already has a name, and a dealership network, in the U.S. market.
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