DETROIT –
General Motors today announced that Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to complete the acquisition of
HUMMER. As a result, GM will begin the orderly wind-down of the HUMMER operations.
“One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed," said John Smith GM vice president of corporate planning and alliances. "GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner."
GM said it will continue to honor HUMMER warranties, while providing service support and spare parts to current HUMMER owners around the world.
According to the Associated Press, sales peaked at 71,524 in 2006. But for the month December, 2009, only 325 Hummers were sold, down 85% from the previous year, according to Autodata Corp.
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The HUMMER traces its origins to the Humvee military vehicle built by AM General LLC. While it acquired a devoted following among SUV lovers who were drawn to the off-road ready vehicles, I would have to say that most of the scrutiny of the HUMMER was directed toward those who used the vehicle in urban settings. Sales of the HUMMER began to decline after gasoline prices and diesel fuel spiked above $4 a gallon in the summer of 2008.
However, if I had the money, I would invest in a few. They could be worth quite a bit of money down the road and sold to those who like to race them in the Baja 500 and other off-road races.
Will the HUMMER be missed by you? Let us know what you think.
Fast Eddie —