GM's Hummer finds no takers

41803 Investors following Mah and Mah. Share this News with them.

0

Like this story, share it with millions of investors on M3

GM's Hummer finds no takers

General Motors' iconic brand Hummer has been put on sale, but it does not seem to have attracted any interest. Mahindra and Mahindra or M&M and Tata Motors may have been approached but they are not biting the bait yet.

Post your opinion here

 

0

Tweet

Share on Tumblr

By Swati Khandelwal , CNBC-TV18

General Motors' iconic brand Hummer has been put on sale, but it does not seem to have attracted any interest. Mahindra and Mahindra or M&M and Tata Motors may have been approached but they are not biting the bait yet.

GM's Hummer brand may be up for sale but with fuel prices surging and stricter emission standards coming into play, US and Japanese companies have shown little interest.

GM is hoping Indian manufacturers like M&M and Tata Motors will bite. But with the recent excise levy on gaz guzzlers in India, the Indian auto-makers maybe apprehensive as well. Moreover, Tata Motors already has the Land Rover. Mahindra & Mahindra has aspirations of being a global SUV player, but sources say, it may not want to take on board an ailing brand.

Hummer recorded a 35% in sales in the first half of this calendar year. Last year, it saw sales drop by more than 20 % and accounts for just 1 % of GM's total sales. Another hurdle could be Hummer's strong association with the US military. Sources say, getting access to GM's dealerships could be the only bait for M&M. Mahindra plans to launch its diesel-powered Appalachian pickup in the US market by the end of 2009. GM, which bought the brand from military contractor AM General in 1998, has invested a lot into the brand including USD 250 million in a plant expansion in Shreveport. When contacted both Tata Motors and M&M declined to comment.

CNBC-TV18 Disclaimer

This information is source-based and has not been provided to the stock-exchanges.