General Motors has denied reports that the company is considering selling or closing several of its brands.  A report in yesterday's Wall Street Journal claimed that the troubled automaker plans to shed white collar jobs and may shutter several nameplates after August board meetings, as part of a recovery plan.

Automotive News (subscription required) reports that GM Spokesman Tony Cervone said yesterday “no other GM brand (besides Hummer) is under strategic review.” No GM sources, however, were willing to deny reports of impending layoffs.

CarCentral notes that, while company spokespeople deny reports of a brand sell-off, "The report that GM might have much more drastic changes planned than first let on during the reveal of its North American restructuring plan last month claimed to be from sources close to the matter," who would not agree to be identified on record.

Jalopnik theorizes, "The key is that no brands are under strategic review at this time. Everything depends on July sales numbers. We expect if sales are even lower than June, the General will change its tune faster than the reels on a gas pump."

If GM officials do elect to sell some brands, they may have a hard time finding a buyer. 

The AP notes, "Industry analysts say buyer interest in the brands most likely to be sold -- Buick, Hummer, Saab and Saturn -- may be low due to a U.S. sales downturn brought on by high gasoline prices and a slow economy.  Also, analysts say, there are individual problems with some of GM's weaker nameplates." 

Foreign automakers are already contacting the media to deny interest in buying the brands, seeking to calm their investors.  Reuters reports that European automotive giant Fiat "is not interested in any of the brands owned by U.S. car giant GM the chief executive of the Italian industrial group said on Tuesday."

GM could decide, then, to eliminate a nameplate.  But that could prove harder, and more expensive, than selling.  Business Week explains "GM can’t just stop building Saturns and Saabs and walk away with a half-hearted apology to the brand’s few remaining loyalists. State franchise laws make it nearly impossible to close a franchise without dealers suing -- and usually winning -- millions for their bad investment." 

The Wall Street Journal notes, "Chrysler several years ago paid handsomely to kill off the Plymouth brand. In a widely publicized move, GM pulled the plug on the vaunted Oldsmobile brand in 2000. GM spent $1 billion alone in 2001 to buy out Olds dealers and wind down some plants. Litigation with hundreds of Olds auto dealers dragged on for years and the final tally is estimated at close to $2 billion.  Ford has weighed killing its Mercury brand for years as well, but as a recently retired Ford executive once said: 'That could cost close to $2 billion, or you could keep losing a couple hundred million a year. Given how your bonus is paid for this year’s performance, it’s easier to kick the can to the next person.'"

Research the most fuel-efficient small cars and hybrids with U.S. News' car rankings and reviews.

Find this story interesting? If so, please click "Buzz up" to let us know.