Hummer may Get… ‘Hammered’

In Financials on March 31, 2009 at 11:51

hummerThe tight restrictions posed by Washington to the two automakers yesterday, GM and Chrysler, will bring severe changes on the structure of the firms and their products. One of the very first victims seems to be Hummer. Its sales over the last year have fallen about 51% – the biggest drop in the US auto-industry. GM had been trying to find a buyer for the brand since June 2008 but no light has been shedded yet. Sale or closure, Hummer is no longer in GM’s plans. I really can’t see any prospects for this luxurious brand considering the crunchy financial times and the new environmental stance that Obama seems to be standing firm about.

Rumor has it that GM plans to stick with only two brands from its existing eight, and lead those two back to profitability.

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