It was announced by GM that it has come into a memorandum of agreement with a potential buyer for its premium off road brand HUMMER. This comes as a result of GM's calculated evaluation of the HUMMER brand and the firms continuing restructuring moves.
It is expected that the sale will be finalized by the end of the third quarter of this year and will undergo the regular closing situations consisting of receipt of relevant regulatory approvals.
The agreement is anticipated to guarantee in excess of 3,000 jobs in the US in the field of manufacturing and engineering and at dealerships nationwide. The agreement also consists of the intentions of the investors to fund future HUMMER product agendas.
The identity of the buyer and its proposed terms has not yet been revealed as of the moment. GM claims that the HUMMER is a serious market contender and will thrive under its new ownership.
The sale of the HUMMER brand will just facilitate further a new GM, which will be leaner, more attuned and more competitive.
During the transition, HUMMER will continue to contract vehicle manufacturing and business service from General Motors. The assembly plant of GM in Shreveport, for instance, will continue to assemble the H3 and H3T until next year at least.