REPORT: GM has three possible offers for Hummer between $100-$200M; SAIC may buy Buick

[Intrepidation]

General Motors has been mandated by the U.S. government to shed brands as part of its restructuring process. Recent reports indicate that the General is hard at work, as three buyers are reportedly seeking to purchase Hummer, while a Chinese company may have interest in Buick.

The Hummer fire-sale has been ongoing, but a brutal economy and non-existent credit markets have made a sale even less probable. Reuters is reporting that GM has than three bidders for the Sierra Club's symbol of excess, with one potential buyer from the U.S. and two others overseas. The price of Hummer is reportedly somewhere between $100-$200 million in cash, plus assurances that the buyer will pump money into engineering, sales and marketing. Whichever firm takes the reigns would also take over responsibility for Hummer's 125 dealers. GM would in turn continue to build the H3 at its Shreveport plant, and turn over future plans for the brand.

A separate report from China Business News states that GM's partner in China, Shanghai Automotive Industry Corp. (SAIC), is looking to purchase Buick outright. The report values the Buick brand at $1 billion, mainly due to its popularity in the Land of the Great Wall. We're more skeptical about this report, however, because it's short on details and just quotes "sources." GM has also never said it would consider selling Buick. The brand is also one of the most popular marques in China, making a sale, unless the price was right, seem like a bad idea.

Autoblog

[FUTURE_OF_GM]

I still highly doubt the sale of Buick....

(Especially given the source)

[regfootball]

is hummer going to be owned by navistar or international or john deere?

[regfootball]

buick going chinese = tragedy

[G. David Felt]

Thanks for the update DF. I really Hope Hummer gets a good new Owner that will realize like the rest of us Hummer owners and the dealer I get service from that the H2 would benefit from the Duramax Engine and allison tranny and the H3 would benefit from the baby Duramax and allison tranny. GM really needs to stop wasting the 500 million spent on research of that baby diesel and bring it to market, they should really point out to the GOV that taking light trucks and SUV's from the mid teens to the mid 20's really does help bring up the corp average for all of GM and saves oil more so than just sitting on the existing engines.

In regards to Buick, I think everyone is in agreement that GM needs to be a 3 tier company, just what the mid level auto line will be called is something else. If they really feel they can over come the stigma of the Buick name here in the US, fine keep it and retire the pontiac and gmc name as Buick is the mid level luxury levels of the trucks, suv's, cuv's, auto's and performance for GM.

Here is to a better world once GM really gets down to an efficient 3 tier Global company.

[toesuf94]

Isn't GM partnered with SAIC to build the Buicks in China? Would this not just be ending US operations and moving production 100% off shore? I am only asking here...

[Intrepidation]

A separate report from China Business News states that GM's partner in China, Shanghai Automotive Industry Corp. (SAIC), is looking to purchase Buick outright.

[haypops]

Isn't GM partnered with SAIC to build the Buicks in China? Would this not just be ending US operations and moving production 100% off shore? I am only asking here...

I read that the Chinese response to the world wide financial screw ups/recession is to purchase "things of value" outside of China. China is loaded with cash but concerned about currency devaluations etc. It is this "theory" that makes me think there might be something real to the rumors of a possible Chinese purchase of Buick.

[G. David Felt]

Course it would be stupid for them to sell a cash cow that would help them in the long run grow and survive. After all, China has 3 times the population of the US.

Be interesting to see what the New GM will end up looking like.

[Intrepidation]

I agree. Buick is successful in China (which is why SAIC wants it) Why the hell would you give up a successful brand?

[G. David Felt]

I agree. Buick is successful in China (which is why SAIC wants it) Why the hell would you give up a successful brand?

This brings me back to the 3 tier level that I still believe GM needs to move to, but also tends to build a case for why they should keep BPG since many people relate to the brand names. Professional Grade is GMC, Denali is GMC. Luxury above Chevy but below Caddy is Buick. Luxury Excitement above chevy is Pontiac.

I would think a valid business case could be made to explain this to the Obama auto group.

Edited April 9, 2009 by dfelt

[gm4life]

This brings me back to the 3 tier level that I still believe GM needs to move to, but also tends to build a case for why they should keep BPG since many people relate to the brand names. Professional Grade is GMC, Denali is GMC. Luxury above Chevy but below Caddy is Buick. Luxury Excitement above chevy is Pontiac.

I would think a valid business case could be made to explain this to the Obama auto group.

Exactly.

[regfootball]

This brings me back to the 3 tier level that I still believe GM needs to move to, but also tends to build a case for why they should keep BPG since many people relate to the brand names. Professional Grade is GMC, Denali is GMC. Luxury above Chevy but below Caddy is Buick. Luxury Excitement above chevy is Pontiac.

I would think a valid business case could be made to explain this to the Obama auto group.

especially since cadillac will be down to two trucks only. escalade and SRX and who knows if the Escalade will even survive.

[G. David Felt]

especially since cadillac will be down to two trucks only. escalade and SRX and who knows if the Escalade will even survive.

Escalade better survive as I have always owned one and will continue to buy them, I like my full size luxury SUV. I put about 30,000+ miles a year on it as I drive everywhere to see this country and that is my fun. Travel by driving, see America and support the small and big towns as I explore our Great big Country.

[daves87rs]

Interesting...

[ocnblu]

Buick was the absolute Ground Zero for GM at its founding. Getting rid of Buick would be getting rid of its very soul.

[Robert Hall]

Buick was the absolute Ground Zero for GM at its founding. Getting rid of Buick would be getting rid of its very soul.

Yeah, it's a pretty fundamental GM brand. HUMMER, Saturn and SAAB can go, no big loss..but a GM without Buick would be like a GM without Cadillac or Oldsmobile..

[Camino LS6]

Then again, you could say that GM sold their soul a while back...

[Oracle of Delphi]

Yeah, it's a pretty fundamental GM brand. HUMMER, Saturn and SAAB can go, no big loss..but a GM without Buick would be like a GM without Cadillac or Oldsmobile..

Psssst, in case you haven't noticed, there is a GM without Oldsmobile ...

[Robert Hall]

Psssst, in case you haven't noticed, there is a GM without Oldsmobile ...

Yes, but it's not the same... HUMMER is no substitute for Olds.

[Oracle of Delphi]

Yes, but it's not the same... HUMMER is no substitute for Olds.

or Buick, I still don't get your point ...

[Robert Hall]

or Buick, I still don't get your point ...

GM phased out Olds about the same time they brought in HUMMER..that's all, no correlation otherwise.

[regfootball]

Escalade better survive as I have always owned one and will continue to buy them, I like my full size luxury SUV. I put about 30,000+ miles a year on it as I drive everywhere to see this country and that is my fun. Travel by driving, see America and support the small and big towns as I explore our Great big Country.

you mean you don't just sit in a tiny coffee shop in seattle all day or in the parts of san francisco and never go outside there but think that is all where its at?

[hyperv6]

It is unlikley GM to sell Buick.

Buick unlike Olds and Pontiac is selling very well somewhere in the world and is making a good Profit.

It has nothing to do with souls. Hell GM tradition and lack of adaption is what created this mess to start with.

I could see Buick here being shut down. Once Chevy and Caddy are stablized in reorganiation Buick could be reintroduced later to this market as they will be still making and selling many models in China. This also will close a lot of dealers.

Heck some idiots may see them as an import and swear they are better cars. LOL

Heck if GM does this right just because a brand goes now does not keep it from reintroing it later as limited targeted model that could be sold in a Chevy or Cadillac store.

[Camino LS6]

Oh joy!

[ocnblu]

Hyper, that makes no sense what. so. ever. Once a brand is shut down, and all the media surrounding that event, you really think GM will spend the money it will take to reintroduce that brand to customers? That is an insane idea.

[hyperv6]

Hyper, that makes no sense what. so. ever. Once a brand is shut down, and all the media surrounding that event, you really think GM will spend the money it will take to reintroduce that brand to customers? That is an insane idea.

Better tell Fiat who is about to re entering the American Market. Or the ther several other brand working to come back.

You have to stop thinking the old way as today car companies are doing many things not even imagined in years past like GM filing for Chaper 11?

Many now think it is insane to even prop up Buick or Pontiac at this point. The fact is Buick shutting down here in and around the GM crises is small potatoes. How many will really miss a few SUV and two cars? To many Buick died a while back.

Besides removing Bucik form the US market and bringing it back while it lives in China is not like bringing back Packard. I would bet if they brought backa FIrebird and slapped a Pontiac plate on it and sold it at a GM dealer people would buy it.

You have to start thinking outside the box as GM just does not have the money in N/A to support everything.

Heck they brought back the Camaro after a lot of negitive press? And how much are they spending?

Bringing anything back is mearly a option.

Edited April 11, 2009 by hyperv6

[wildcat]

Buick was the absolute Ground Zero for GM at its founding. Getting rid of Buick would be getting rid of its very soul.

Thank you, ocnblu!

[cire]

I still think Buick has the potential to expand into becoming a full scale premium brand. It has offered a diverse variety of vehicles in the past and has the ability to do so in the future. The only exception I see for Buick is trucks or truck based products. Sedans, coupes, hatchbacks, MPVs, and CUVs are all types of vehicles that can be added to Buick as long as the products are properly executed. The proper products and marketing are all that is needed to transform Buick from an outdated, stodgy brand to a cool and relevant premium marquee.

[hyperv6]

Buick was the absolute Ground Zero for GM at its founding. Getting rid of Buick would be getting rid of its very soul.

And Ground Zero is toxic for how long after a nuke goes off?

Calling it the Soul of GM dose nothing for the average consumer. They could care less. It is either get the new product on the floor and prove it is improved or shut the doors.

Soul or not if it is not shoing a profit either Fix it or Kill it.

I like Buick and think it can be saved but the longer it takes the more is wasted that could save GM. I know GM's money limits much of what it does but so does time.

If you want to save Buick do it with your brain not your heart.

Edited April 11, 2009 by hyperv6

[Robert Hall]

And Ground Zero is toxic for how long after a nuke goes off?

Calling it the Soul of GM dose nothing for the average consumer. They could care less. It is either get the new product on the floor and prove it is improved or shut the doors.

True, the Generican consumers don't know nor do they care about GM history...all they care about is how reliable Consumer Reports rates their Toyotas.

[Camino LS6]

Personally I don't see anything to miss at Buick, but losing the Chinese market would be plain stupid.

Buick needs to stay, at least in China.

[hyperv6]

Personally I don't see anything to miss at Buick, but losing the Chinese market would be plain stupid.

Buick needs to stay, at least in China.

I would love to see them grow Buick and Chevy in China. I think Chevy would prove very vital in the growth of the low end China market as more people get money to buy thier first cars.

I saw a show where a Chinese man was proud to go buy his small Daewoo based Chevy. There are multi billion reason for GM to stay in that market.

They would be better off to sell the N/A divison vs selling China. Not that I would want or expect that to happen.

The only thing I fear is the Chinese goverment can come in at anytime and force GM to do what ever they want. Oh that can happen here now too so Never mind.

[hyperv6]

True, the Generican consumers don't know nor do they care about GM history...all they care about is how reliable Consumer Reports rates their Toyotas.

Few people under 40 know or care about GM history. In fact they could care less about most history in general and will pay a price for not knowing it.

[longtooth]

Few people under 40 know or care about GM history. In fact they could care less about most history in general and will pay a price for not knowing it.

Generally being 'doomed' to repeat it.

Witness what some would call The Great Depression II.

Did anyone at all listen to their Grand Parents or Great Grand Parents?

[Robert Hall]

Generally being 'doomed' to repeat it.

Witness what some would call The Great Depression II.

Did anyone at all listen to their Grand Parents or Great Grand Parents?

Or their parents...my folks grew up during the Great Depression.. then again, it's no where near as bad now as it was then, from what I've heard.

[longtooth]

Or their parents...my folks grew up during the Great Depression.. then again, it's no where near as bad now as it was then, from what I've heard.

True. I have exclusive recollections of both my Mom and Dad. Dad is living. Mom died nearly 10 months ago. She told me of the old-time radio programs she would listen to as a girl. Now I hear some of the very same programs on XM radio and I feel a closeness to her in hearing what she heard 70 years ago.

My parents were born in the mid-1930s Their elders held me in thrall as I was fortunate to grow up in their midst.

I recall much of what they told me, showed me. But as their voices were silenced by time I came to regret my juvenile lapses in attention.

I took them for granted.

And there are times when I'm consumed with guilt and regret.

Human nature.

[hyperv6]

Generally being 'doomed' to repeat it.

Witness what some would call The Great Depression II.

Did anyone at all listen to their Grand Parents or Great Grand Parents?

I was trying to avoid the old saying but it is very true in many areas.

I had Grand Parents that had the stories and the savings as they knew it could happen again. People today just don't save or put themselves in great debt. It is nice to have the big house and the Bemmer but if you lose your job you lose everything,

The scary part is while it is not as bad as the great depression it still can reach those levels yet as we are far from out of the woods and the handling of the economy has yet to convince Wall Street and investors.

New taxes and public works projects are not going to jump start the investing we need. I hope to see something that will encourage the private sector.

I wish they would start they would spend more time teaching in school responsible handling of money and savings. If they can teach them to recycle a can they can surely teach them how to be fiscally responsible.

I would like them to teach ethics again but the lack of qualified people will prevent that LOL.

Edited April 12, 2009 by hyperv6

[longtooth]

I was trying to avoid the old saying but it is very true in many areas.

I had Grand Parents that had the stories and the savings as they knew it could happen again. People today just don't save or put themselves in great debt. It is nice to have the big house and the Bemmer but if you lose your job you lose everything,

The scary part is while it is not as bad as the great depression it still can reach those levels yet as we are far from out of the woods and the handling of the economy has yet to convince Wall Street and investors.

New taxes and public works projects are not going to jump start the investing we need. I hope to see something that will encourage the private sector.

I wish they would start they would spend more time teaching in school responsible handling of money and savings. If they can teach them to recycle a can they can surely teach them how to be fiscally responsible.

I would like them to teach ethics again but the lack of qualified people will prevent that LOL.

Yeah, I think you nailed it. The things we chase in our youth can become encumbrances later in life.

My Mother would always tell me this as well: "Everything in moderation". I've lived long enough to see the wisdom in what she taught to me.

[hyperv6]

Yeah, I think you nailed it. The things we chase in our youth can become encumbrances later in life.

My Mother would always tell me this as well: "Everything in moderation". I've lived long enough to see the wisdom in what she taught to me.

I firmly feel we will have life figured out about the time we are on our death beds.

I just had a co worker hit 40 and find out what I told him is true. You can drink and party like your 20 for the rest of your life and not pay for it in several ways.

A new girfriend, Health issues, near bankruptcy and a 10 year old daughter have tought him well. He no longer calls me goody two shoes.

I may have been mad and mom and dad in the past for stopping me at many things but now I see they did me a great favor.

The way I see it we are all only on bad choice way from a episode of Cops or Politics.

Edited April 12, 2009 by hyperv6

[CaddyXLR-V]

I was trying to avoid the old saying but it is very true in many areas.

I had Grand Parents that had the stories and the savings as they knew it could happen again. People today just don't save or put themselves in great debt. It is nice to have the big house and the Bemmer but if you lose your job you lose everything,

The scary part is while it is not as bad as the great depression it still can reach those levels yet as we are far from out of the woods and the handling of the economy has yet to convince Wall Street and investors.

New taxes and public works projects are not going to jump start the investing we need. I hope to see something that will encourage the private sector.

I wish they would start they would spend more time teaching in school responsible handling of money and savings. If they can teach them to recycle a can they can surely teach them how to be fiscally responsible.

I would like them to teach ethics again but the lack of qualified people will prevent that LOL.

I lost my job while I owned a house and car. I didn't lose everything. In fact, I now own a second house, possibly a 3rd shortly, and I'm going to try a business within the next year. We are not in the middle of a great depression. Unemployment is not going to hit 25%. There are already signs the economy may be headed back up. Unemployment will probably peak the end of this year, beginning of next, then start to go back down as well.

[hyperv6]

I lost my job while I owned a house and car. I didn't lose everything. In fact, I now own a second house, possibly a 3rd shortly, and I'm going to try a business within the next year. We are not in the middle of a great depression. Unemployment is not going to hit 25%. There are already signs the economy may be headed back up. Unemployment will probably peak the end of this year, beginning of next, then start to go back down as well.

That is what some are claiming and it is the right thing to say but to be honest no one really knows for sure.

Even if things get better starting now it will take some time to recover the lost jobs, markets and earnings. The more taxes go up will hurt and the threat of more goverment debt is also a wild card.

Many are watching the Trillion put into the Fed Res. If the timing is righ they can pull this thing out. If their timing is late inflation takes over and if it is early depressiona and inflation happens.

No one knows if it will work as it has never been tried.

We also have to worry about the threat of a another 9/11 or world conflict as it can stop improvments quickly. One plot was stopped in England just this week.

We can and should come out of this but we are still need to hold our breaths for a little while longer to see how it all pans out. Just too too early to count on a full reovery yet as too many things can still cause issues.

We have for sure seen worse but the irresponsible ways of many could still make this worse. Just check what he average credit card debt is in this country.