GM Evaluating Two New Offers for HUMMER Brand
Posted: Fri Feb 26, 2010 7:03 am
Just a day after announcing that their plan to sell the HUMMER brand to a Chinese company fell through, GM is reviewing two additional offers from the original pool of suitors.
The Wall Street Journal is quoting sources familiar with the matter as saying the two latest suitors have previously submitted offers, but had originally been turned down in favor of what appeared to be a more favorable deal with Tengzhong.
While HUMMER may be evaluating whether either company is viable, it’s understandable that GM would settle for far less money than it had originally hoped for – even with Tengzhong – which was around $150 million in cash and a long-term viability plan w/ guaranteed investment. Also, GM isn’t going to spend another year in negotiations with a new company.
HUMMER spokesperson Nick Richards told Yahoo Autos that they would entertain any new bids that came in for the brand. “In the early phases of the wind-down, we’ll entertain offers and determine their viability, but that will have to happen in pretty short order,” said Richards.
The Wall Street Journal is quoting sources familiar with the matter as saying the two latest suitors have previously submitted offers, but had originally been turned down in favor of what appeared to be a more favorable deal with Tengzhong.
While HUMMER may be evaluating whether either company is viable, it’s understandable that GM would settle for far less money than it had originally hoped for – even with Tengzhong – which was around $150 million in cash and a long-term viability plan w/ guaranteed investment. Also, GM isn’t going to spend another year in negotiations with a new company.
HUMMER spokesperson Nick Richards told Yahoo Autos that they would entertain any new bids that came in for the brand. “In the early phases of the wind-down, we’ll entertain offers and determine their viability, but that will have to happen in pretty short order,” said Richards.
