General Motors could once again become synonymous with Hummers – or HMMWVs in this case – as the company is reportedly interested in buying AM General.
According to Reuters, AM General has put itself up for sale and has enlisted the help of an investment bank to find potential bidders. Many of the potential suitors are believed to be fellow defense contractors such as General Dynamics, Oshkosh and BAE Systems. However, one source told the publication that automakers such as General Motors and Fiat Chrysler Automobiles may also be interested.
While nothing is official, General Motors has a long history in the defense business. The company sold its defense unit to General Dynamics in 2003, but the automaker has been ramping up its military efforts recently.
In the past few years, GM has developed the Chevrolet Colorado ZH2 for the U.S. Army and collaborated with the U.S. Navy on unmanned undersea vehicles powered by fuel cells. The company also introduced its Silent Utility Rover Universal Superstructure (SURUS) at the fall meeting of the Association of the United States Army last year.
Around the same time, reports emerged that GM was planning on setting up a new defense unit. Purchasing AM General would certainly give the company a big head start on that goal.
FCA’s rumored interest in AM General is less clear, but the companies do have a history together thanks to Jeep and its former owner American Motors. However, that tie was severed decades ago when Renault bought a controlling stake in AMC.
AM General is rumored to be worth more than $2 (£1.5 / €1.7) billion. That’s a pretty significant amount of money, but Reuters notes AM General’s recent contract with the U.S. Army could be worth as much as $800 (£617 / €696) million.