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GM Could Sell Hummer to Chinese Company
SHANGHAI, China — General Motors could sell its troubled Hummer brand to a Chinese automaker, according to Fritz Henderson, president and chief operating officer.
"If any Chinese companies are interested in buying Hummer, it will be certainly an option for us to look at. We need to be open to all ideas," said Henderson, who was making his first trip to China since he took up his new post in March.
Henderson also emphasized that China will continue to be a major factor in GM's bid to return to profitability. A continuing interest in the Chinese market, as well as other emerging markets such as Russia and Latin America, is a top priority for GM, which is struggling with slumping sales in North America, especially of big trucks and SUVs.
With gas prices in the U.S. now averaging more than $4 a gallon, customers have shunned GM's full-size pickups and utility vehicles and shifted to fuel-efficient compact cars.
Over the past three years, GM has reported losses totaling more than $50 billion, and most auto industry analysts do not expect the automaker to return to profitability this year.
What this means to you: To support its position in China, GM has pledged to invest $1 billion a year with its partner, Shanghai Auto, to add new products and expand production. — Vivian Jin, Correspondent
"If any Chinese companies are interested in buying Hummer, it will be certainly an option for us to look at. We need to be open to all ideas," said Henderson, who was making his first trip to China since he took up his new post in March.
Henderson also emphasized that China will continue to be a major factor in GM's bid to return to profitability. A continuing interest in the Chinese market, as well as other emerging markets such as Russia and Latin America, is a top priority for GM, which is struggling with slumping sales in North America, especially of big trucks and SUVs.
With gas prices in the U.S. now averaging more than $4 a gallon, customers have shunned GM's full-size pickups and utility vehicles and shifted to fuel-efficient compact cars.
Over the past three years, GM has reported losses totaling more than $50 billion, and most auto industry analysts do not expect the automaker to return to profitability this year.
What this means to you: To support its position in China, GM has pledged to invest $1 billion a year with its partner, Shanghai Auto, to add new products and expand production. — Vivian Jin, Correspondent
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