GM Brand Sales Update

A report came out yesterday regarding GM's continuing efforts to find a buyer for Hummer, Saab and Saturn. It also created a stir by speculating on a possible Buick sale to China's SAIC. Before I had a chance to comment on that (unlikely) deal, GM China today dismissed the news story.

The deal would have been unlikely for so many reasons. The Buick brand is huge in China. If General Motors has any hope of being a successful global company, it will need a strong presence in the country. With 1 billion people, it will one day become with the world's largest auto market.

The amount of money speculated on ($1 billion) is pocket change and nowhere near the value that the brand is worth to GM. Also, in GM's report to the U.S Government, it was listed as one of the company's four "core" brands, and rightly so.

It shows promise for success in China, the United States and around the world. Especially with new products like the LaCrosse coming, Buick has the possibility for a very bright future.

Other brands Saab, Hummer and Saturn though are definitely being actively sought out for a buyer. The report said that three buyers are in the running for the Hummer brand, with bids ranging between $100 million and $200 million in cash.

One buyer is from the U.S, the others are overseas. The bidders include private equity and wealthy individuals. The buyer would take over all GM's liabilities surrounding the brand, including it's 125 U.S dealers and would commit to further investments in engineering, marketing and sales.

GM would continue to build the H3 for a future buyer at it's Shreveport, Louisiana plant.

Very interesting, it's good there is some buyers that are interested in the brand. Surprising given the economy but the fact is that the Hummer brand is iconic here and around the world, so it does hold a lot of value. Hopefully a U.S venture will get the company instead of a foreign one. For now though, it's good to know there is at least one in the running and that for now, any Buick brand selling is off the table.