GM Reaches a Deal To Sell Its Hummer Brand

The Infamous Gas Guzzling Hummer







GM announced Tuesday that it has a Memorandum of Understanding to sell its Hummer brand, although it would not disclose the name of the buyer nor the price. The deal is expected to close by the third quarter of this year.

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

The automaker has been reviewing options for the past year for the gas-guzzling brand.

GM sold about 27,485 Hummers in the United States in 2008, down 51 percent from a year earlier. Hummer SUVs starts at roughly $31,000 and go up to nearly $72,000 with options.

There were reportedly three bidders for the gas guzzling lineup of SUV's. One from the US and two from overseas. GM's sale of the Hummer brand is long overdue and many point to the acquisition of Hummer as one of the many business errors leading up to their bankruptcy filing on Monday.