Hummer
In administration auto company General Motors Corp. announced Tuesday that it has agreed to sell its Hummer brand, a day after the U.S. car maker filed for bankruptcy protection, though in the early stages it hopes that it will transform its most profitable assets into a new company in less than 60 days.
The Detroit-based company has not revealed who the proposed buyer or the intitial negotiating price, but the annoucement did say the sale would secure more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships.
The Hummer had been the critics rallying call as to what had brought about the financial woes the rugged but fuel-inefficient Hummer became a symbol of excess as gas prices rose.
A sale of the Hummer brand was not unexpected as. Chief Executive Fritz Henderson revealed in April that the automaker was expecting final bids from three potential buyers within the month.
GM is also trying to sell its Saab and Saturn brands and will phase out its Pontiac brand as it concentrates on its profitable Chevrolet, Cadillac, Buick and GMC labels.
The proposed deal for Hummer will allow it to continue to contract vehicle manufacturing and business services from GM during the transition process, the sale is expected to close by the third quarter's end.
GM who entered into administration on Monday under Chapter 11 of the U.S. bankruptcy code said it hoped to emerge from reorganisation in 60 to 90 days as a profitable company albeit with fewer employees, factories and dealers.