Fresh from filing for bankruptcy protection on Monday, General Motors announced on Tuesday morning that it has signed a memorandum of understanding (MoU) with a buyer for its Hummer division. Although GM did not disclose the name of the buyer nor the financial terms of the agreement, the automaker said that the sale is expected to close by the end of third quarter of 2009. GM said that the deal will secire more than 3,000 U.S. jobs in manufacturing, engineering and at Hummer dealerships around the U.S.
“I’m confident that HUMMER will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker,” said Troy Clarke, President of GM North America.
GM said that as part of the proposed deal, Hummer will continue to contract vehicle manufacturing and business services from GM during a defined transitional time period. Under the proposed agreement, GM’s Shreveport Assembly plant would continue to contract assemble the H3 and H3T through at least 2010.
“GM has developed HUMMER into a globally recognized off-road brand,” said James Taylor, Hummer chief executive officer. “The proposed agreement will enable us to continue that growth and maximize the brand’s potential through new, innovative off-road vehicles with improved efficiency and alternative fuel powertrains. Today’s announcement is great news for Hummer’s current and future customers, dealers, suppliers and employees around the globe.”