GM may get rid of Hummer
But industry analysts say buyer interest in the brands most likely to be sold — Buick, Hummer, Saab and Saturn — may be low, due to a U.S. sales downturn brought on by high gasoline prices and a slow economy. Analysts also say there are individual problems with some of GM's weaker nameplates.
GM, which has eight brands, announced last month that it was reviewing Hummer for possible sale. The company on Monday denied that other nameplates are under review.
But a person familiar with GM's internal discussions says brands other than Hummer are being studied. The person wanted to remain anonymous because no decisions have been made.
GM, the person said, also is considering wider white-collar job cuts and bringing more small cars to the United States from elsewhere in the world to deal with the sales slump of trucks and sport utility vehicles.
David Healy, an auto analyst with Burnham Securities, said GM has enough money to make it through this year, but may need more cash in 2009. The automaker, he said, has ways to raise money other than selling brands.
But Mark Warnsman, an analyst with Calyon Securities, said Hummer might be attractive to a Russian or Indian automaker for its U.S. dealership network.
Saturn could be of interest to another automaker that doesn't have a mainstream brand, and a luxury automaker might have the expertise to revive Sweden's Saab, analysts said. Buick might be a tougher sell, they said.
Buick and Saturn continue to struggle, despite having revamped model lineups and some of GM's best vehicles, said Tom Libby, senior director of industry analysis for J.D. Power and Associates.
Saturn, born in 1990 as GM's small-car answer to the Japanese automakers, was remade over the past three years with more upscale models, but sales this year are down nearly 19 percent.
"Saturn, to me, it's got this identity problem," Libby said. "It's not clear what it is. That's not going to go away with a new owner."
Saturn General Manager Jill Lajdziak told reporters after a Habitat for Humanity event in Detroit on Monday that a potential sale of Saturn is "not in the cards."
Lajdziak said Saturn sales were actually up 9 percent in June, excluding the Ion small car that was discontinued last year.
Recent comments
You are either a brilliant satirist poking fun at the many crazy...
Re: Sad day | July 8, 2008 at 1:50 p.m.
It is with great sadness that GM must get rid of the Hummer -- this...
Sad day in American history | July 8, 2008 at 5:53 a.m.
