Hummer may find a home in the Persian Gulf
Hummer may have a new home, again. Right now, the most interest so far has come from the region of the world that has made it famous, the Middle East. General Motors is reporting today interest in the off-road brand from two separate Gulf Arab private investors.
Unlike the United States, the Gulf region is currently experiencing low fuel prices and rapid economic expansion. Buyers in that area of the world also currently have favorable credit terms. This all creates a situation where Hummer is a popular brand that sells well and has very important public stature. "The Hummer as a total volume is small, but in terms of growth it is going very fast," said GM Middle East Managing Director Terry Johnsson.
Hummer brand does not make the Humvee military vehicles (AM General does, and it is not owned by GM.) This is an important distinction because that means GM should have no problems from the U.S. Government selling the Hummer brand. Back in the mid-80s the then state-owned Renault was under pressure to sell AMC. The French company owned AMC, who were the owners of Jeep/AM General, and the U.S. Government was not happy that a main contractor was in the hands of a company owned by a foreign government.