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Beleaguered GM sells Hummer

2009-06-02 13:35

General Motors said on Tuesday that it had entered into a memorandum of understanding to sell its Hummer brand, but didn't name the buyer or say how much money it would get for the all-SUV line.

GM, which filed for bankruptcy on Monday, said the sale was is set to close by the third quarter of this year .

The transaction includes plans by the unnamed investor to aggressively fund future Hummer product programs, according to the automaker.

Under the proposed deal, Hummer will continue to contract vehicle manufacturing and business services from GM during a defined transitional time period.

GM did not reveal other details of the sale.

However, it appears as if all production of the Hummer will be consolidated into a single location at Shreveport in the United States.

According to a statement from GM South Africa local Hummer owners will enjoy full support from GMSA. The carmaker also said that Hummers will still be distributed through its local dealerships.

“The relocation of HUMMER assembly to the US has already been contemplated within GMSA’s restructuring initiatives, which means that there will be no further impact on our employment levels,” the statement said.

In May GM sold 24 Hummer H3s locally, and exported 327 units.

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