Tata and Mahindra interested in HUMMER

[Blake Noble]

Tata and Mahindra interested in HUMMER
Got a brand to sell? Call up an India-based automaker. They'll buy.

Link to original Article @ Autoblog

Got an automotive brand to sell? It doesn't matter how it's performing in the marketplace, whether its products are outdated or just not popular in the present buying climate. If you've got one, an Indian automaker wants to buy it. At least that's the way it seems after learning that two Indian automakers, Tata and Mahindra, have approached General Motors to purchase the HUMMER brand. GM only announced that it would begin considering what to do with HUMMER this week.

Tata has already gobbled up Jaguar and Land Rover from Ford, but apparently is still hungry for some more American-owned metal, and what's more American than HUMMER? Mahindra, meanwhile, will be bringing its diesel-powered Appalachian pickup to the U.S. market by the end of 2009. Tata and Mahindra tend to go after the same things, as both were bidders for Jaguar/Land Rover and both are competing for the right to own motorcycle manufacturer MV Agusta. Of course, neither India-based company is commenting on their interest in HUMMER and GM's all like, "Whoa, we just said we were thinking about it" (not an actual quote). HUMMER sales last month fell 60.2% last month compared to May 2007, and with gas prices going up and up, the poster brand for insensitive consumption may not have long to live under the GM corporate umbrella.

[ZL-1]

Sell it!

Edited June 8, 2008 by ZL-1

[balthazar]

Jun 3 2008, 10:07 PM' post='401084']

Hummer is NOT exported to india or china, correct? With the boom still going on in those countries, I would think the demand there for a Hummer-type vehicle could be considerable.

toot toot!

Edited June 8, 2008 by balthazar

[FUTURE_OF_GM]

"poster brand for insensitive consumption"

Give me a f*cking break... Talk about stereotyping.

Hummer is also for people who NEED the vehicles.

I don't think GM should sell, but as I touched on in my recent post, Hummer does not fit in with the "new GM"

Edited June 8, 2008 by FUTURE_OF_GM

[Bimmer325]

GM would be crazy not to dump Hummer, especially if there is someone dumb enough to want it.

[Robert Hall]

GM would be crazy not to dump Hummer, especially if there is someone dumb enough to want it.

I can't imagine anyone willing to pay anything for it... it's brand value is just about zero now.

[bobo]

Hummer was a pointless diversion the last few years.

[Robert Hall]

Hummer was a pointless diversion the last few years.

Yes...a total waste of money, resources, and time.

[turbo200]

one part of me says the kind of product conceivable through hummer won't be seen elsewhere in GM anytime soon, along the lines of the forthcoming HX, with one larger model still more utalitarian in design and function, a truer competitor to the Range Rover than Hummer is. Another part of me says something like this could be possible through GMC, though not as pure and seamless in its design roots. Another part of me, the business-oriented part that seeks to protect GM's assets says sell sell sell.

I can see no good contradiction to those that say Hummer has been a complete waste of resources and diversion.

OTOH, if they were to keep it and decide they can support it through two exceptional products, I can see where already developed platforms and diesel/hybrid tech could easily support the kind of vehicles Hummer needs to become to survive. However that's looking far ahead, and the road right now includes plenty of pitfalls for GM, lack of resources, and dramatic gas costs, giving huge reason to those that expect these kinds of cars not to survive in the now tense consumer climate.

Edited June 8, 2008 by turbo200

[crash]

yeah maybe Hummer wasnt a total waste of money but they do need to sell it.

[balthazar]

>>"I can see no good contradiction to those that say Hummer has been a complete waste of resources and diversion."<<

Simple- did it make money as a division? If yes, then of course it was 'worth it'.

And it's brand image may be low in the U.S. right now, but I'll bet handsomly that it would do very well in the Middle East & Asia.

[FUTURE_OF_GM]

I'll bet handsomly that it would do well in america if GM had the HX in the showroom.

And, it's funny that no one was complaining about the division circa 2002 when GM was making about $20K+ on every H2 sell.

[CSpec]

Even "worthless" brands like HUMMER still have a corporate shell and legal identity in the US already in place, with a dealer network. These foreign companies can capitalize on that to save a lot of money on entrance to the marketplace.

[turbo200]

Even "worthless" brands like HUMMER still have a corporate shell and legal identity in the US already in place, with a dealer network. These foreign companies can capitalize on that to save a lot of money on entrance to the marketplace.

right, but what are they going to do, launch a hummer car? unless they are banking on continuing sales of the hummer vehicles as is to luxury buyers, which would be a solid bet to make. that's why I'd be for GM keeping them, just put some hybrid tech, or diesel, downsize the next round of cars to where the hummer truck is no larger than H3, maybe make it an all aluminum platform. HX could serve a lower end, but again with high gas pricing you're going to be hard pressed finding buyers unless you seriously upgrade the hardware and cost along with it. Hummer has the brand image to command big pricing. as long as the design and quality are there. that aluminum platform could help Cadillac and GMC to sell upmarket SUVs to whoever is out there still interested [big money buyers]. the only thing is, GM has so much on its plate right now, I don't see a way forward for keeping Hummer.

[cire]

I think Hummer served its short lived purpose when it rode the wave of SUV fever that engulfed our country. I do think it is worthless to GM now. The "Hummer" name is associated with excess and gas guzzling; I think that it will take a lot of effort and funds to turn around that image in the market. I think GM's resources could be better used elsewhere; I can't see them justifying the need to utilize these resources to fix a division that will be an incredibly small niche in the future auto market. If there are foreign companies interested in buying this division, I say sell it while you still can. If GM can still generate some revenue by offloading this division to someone else, then they should do it.

I also think that Saab should be sold. GM could use the revenue generated by selling this division and the freedom to fix/restructure their remaining core divisions (Chevrolet, Pontiac, Saturn, GMC, Buick, Cadillac) without unnecessary distractions.

Edited June 9, 2008 by cire

[enzl]

I think Hummer served its short lived purpose when it rode the wave of SUV fever that engulfed our country. I do think it is worthless to GM now. The "Hummer" name is associated with excess and gas guzzling; I think that it will take a lot of effort and funds to turn around that image in the market. I think GM's resources could be better used elsewhere; I can't see them justifying the need to utilize these resources to fix a division that will be an incredibly small niche in the future auto market. If there are foreign companies interested in buying this division, I say sell it while you still can. If GM can still generate some revenue by offloading this division to someone else, then they should do it.

I also think that Saab should be sold. GM could use the revenue generated by selling this division and the freedom to fix/restructure their remaining core divisions (Chevrolet, Pontiac, Saturn, GMC, Buick, Cadillac) without unnecessary distractions.

The problem with selling either Saab or Hummer is finding a buyer that will pay something significant--either in the form of cash or absorbing future obligations.

IMO, GM could only give away these brands with a dowry---money they simply don't have right now.

I know that if my dealer group had spent $millions putting up a Hummer franchise, the lawyers would already be filing a case against GM--they've managed to alienate another faction of the dealer body--most of whom also have a Caddy or Saab franchise to try and salvage from this mess.

[Camino LS6]

The HX is brilliant, so much so that another solution should be sought.

[FUTURE_OF_GM]

The HX is brilliant, so much so that another solution should be sought.

Nah... GM will be caught with it's pants down yet again, by pioneering the idea and then watching Jeep, Ford (Bronco) and Land Rover cash in on it.

[Windy-57]

I disagree that Hummer is worthless. For as hated as it is by some people, it's loved by others for the very same reason and the reason is that the Hummer name actually stands for something, how many other GM divisions have that clear of a brand identity? If the recent changes in the automotive landscape have taught us anything, it's that you can't ignore one segment of product to chase the current trend. What will happen in the mid and full size SUV segments when battery technology takes off and cars are using almost no gas? I'd bet my left nut that when that time comes, Hummer will be a hot commodity again because it actually says off-road like not other brand can.

To me, the real issue (as was mentioned) is whether GM can afford to update the brand in a meaningful way now. If they need those funds elsewhere, then I can see selling it.

[Camino LS6]

I disagree that Hummer is worthless. For as hated as it is by some people, it's loved by others for the very same reason and the reason is that the Hummer name actually stands for something, how many other GM divisions have that clear of a brand identity? If the recent changes in the automotive landscape have taught us anything, it's that you can't ignore one segment of product to chase the current trend. What will happen in the mid and full size SUV segments when battery technology takes off and cars are using almost no gas? I'd bet my left nut that when that time comes, Hummer will be a hot commodity again because it actually says off-road like not other brand can.

To me, the real issue (as was mentioned) is whether GM can afford to update the brand in a meaningful way now. If they need those funds elsewhere, then I can see selling it.

QFT

[FUTURE_OF_GM]

Wow... I actually agree.