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Tata, Mahindra Approached About Acquiring Hummer
NEW DEHLI — Reports from both the India Times and Automotive News indicate that Indian automakers Tata and Mahindra & Mahindra have both been approached about potentially acquiring Hummer from General Motors. In the wake of skyrocketing worldwide fuel costs, buyers are shying away from larger SUVs and trucks and into more fuel-efficient hybrids and crossovers.
Earlier this week, General Motors announced that it is shutting down production at four of its plants that build gas-guzzling pickups and SUVs and focusing on such projects as the electric Chevrolet Volt, a higher-efficiency engine, and increased production of the popular Chevy Malibu as well as the Chevy Cobalt and Pontiac G6. Hummer, which makes big, heavy fuel-guzzling SUVs, is not exactly a good fit in GM's current game plan. General Motors CEO Rick Wagoner said, "At this point, we are considering all options for the Hummer brand, everything from a complete revamp of the product line up to a complete sale of the brand."
India's Tata recently acquired both Jaguar and Land Rover, and Mahindra & Mahindra was also a bidder for the British brands.
If the sale price of Hummer is right, it could be a good fit for either of the Indian companies. Each has a strong SUV presence and a desire to expand beyond their national borders. Analysts say the only real stepping stone is the negative brand association, as Hummer is heavily associated with the U.S. military while India uses military hardware from Russia.
Hummer recorded a 35 percent drop in sales in the first half of this calendar year. Last year, it saw sales drop by more than 20 percent. Hummer accounts for just 1 percent of GM's total sales.
What this means to you: Do the Indian automakers know something we don't? — Doug Lloyd, Senior Copy Editor
Earlier this week, General Motors announced that it is shutting down production at four of its plants that build gas-guzzling pickups and SUVs and focusing on such projects as the electric Chevrolet Volt, a higher-efficiency engine, and increased production of the popular Chevy Malibu as well as the Chevy Cobalt and Pontiac G6. Hummer, which makes big, heavy fuel-guzzling SUVs, is not exactly a good fit in GM's current game plan. General Motors CEO Rick Wagoner said, "At this point, we are considering all options for the Hummer brand, everything from a complete revamp of the product line up to a complete sale of the brand."
India's Tata recently acquired both Jaguar and Land Rover, and Mahindra & Mahindra was also a bidder for the British brands.
If the sale price of Hummer is right, it could be a good fit for either of the Indian companies. Each has a strong SUV presence and a desire to expand beyond their national borders. Analysts say the only real stepping stone is the negative brand association, as Hummer is heavily associated with the U.S. military while India uses military hardware from Russia.
Hummer recorded a 35 percent drop in sales in the first half of this calendar year. Last year, it saw sales drop by more than 20 percent. Hummer accounts for just 1 percent of GM's total sales.
What this means to you: Do the Indian automakers know something we don't? — Doug Lloyd, Senior Copy Editor
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