G.M. is getting closer to dealing its gas guzzling Hummer division, says The Deal. Who wants such a vehicle with gas prices sky-rocketing? Middle Eastern investors, of course. That’s probably the only place it costs less than a monthly mortgage payment to fill up.
The Deal: The second in command at General Motors Corp. said Wednesday, Sept. 3, the automaker expects to sell its Hummer brand by early 2009 as part of the company’s plan to raise cash to weather a slumping economy that has dragged down car sales.
Detroit-based GM put Hummer on the block in June, part of an effort to reduce the company’s emphasis on selling gas-guzzling sport utility vehicles in favour of manufacturing more fuel-efficient vehicles. The company said last month it has received expressions of interest from potential buyers and that it is preparing to open formal talks over a possible deal.
Speaking to reporters in India, GM chief operating officer Fritz Henderson said the Hummer auction is being conducted “on an urgent basis.” He also said a deal by the end of the year is possible, while noting that “if it takes us to early next year, that is OK, too.”
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