DUBAI: Two Gulf investors have expressed interest in buying General Motors Corp’s Hummer brand, the company’s Middle East chief told Reuters yesterday. “For sure, there has been interest from various parties within the Gulf ... there is a precedent in the cases of Aston Martin, Ferrari or Daimler, and those kinds of solutions could be very realistic solutions,” GM Middle East Managing Director Terry Johnsson said in a telephone interview.
GM Chief Executive Rick Wagoner said on Aug. 21 the automaker was readying sales documents for its Hummer brand and had initial expressions of interest from potential buyers that it hoped to develop into formal sale talks. “We have had two separate investors raise their hand as being interested, but I don’t know what’s happened since then,” Johnsson said. Johnsson said he was not directly involved in the sale process.
Earlier this month, automakers from India, Russia and China backed off after holding exploratory talks on the brand according to sources familiar with the matter.
Modelled on US military vehicles widely deployed in the Gulf War in 1991, the Hummer sports utility vehicle (SUV) made its debut shortly after that time, when US gasoline prices were less than half what they are now. The Gulf would be a viable option, however, since rapid economic growth, low fuel prices and the brand’s position as a status symbol have made the region one of the biggest buyers of the Hummer. “The Hummer as a total volume is small, but in terms of growth it is going very fast,” said Johnsson. “The brand is extremely vibrant ... which augurs very well.”
