View of part of the Fujairah Corniche and the Hajar Mountains in the Background

Tuesday, June 2, 2009

GM Still Open for Business in Middle East and Hummer Has a Buyer

The LA Times reported 2 June 2009:

“General Motors' Middle East head said the oil-rich region's operations are a "vibrant" part of the automaker and remain open for business, despite its bankruptcy protection filing.”

“In a briefing with reporters in Dubai on Tuesday, the company's Middle East President Mike Devereux emphasized GM's commitment to the region and said none of the auto maker's Mideast operations is affected by Monday's filing — the fourth-largest in U.S. history and the largest for an industrial company.”

“The emphasis reflects the importance GM places on a region that still has a hearty appetite for the large vehicle critics say helped run the U.S. auto giant into the ground.”

“GM sees the Middle East, and particularly the wealthy Gulf states, as a growing market. The region has a deeply entrenched car culture, with many buyers opting for luxury cars and gas-guzzling sport utility vehicles.”

“GM's Middle East arm operates as a separate distribution company from its U.S. parent. The company said the region and other overseas markets were not included in Monday's [bankruptcy] filing.”

Hummer Still Alive
The article continued:

“There has been speculation a buyer for GM's Hummer brand could emerge from the region's investment funds, which have taken stakes in other premium brands like Ferrari and Mercedes-Benz maker Daimler AG….”

“The company's Middle East President Mike Devereux said he could not comment on negotiations for the division, but did note that ‘Hummer is obviously a strong brand, an iconic brand ... in the region.’”

A separate LA Times article had this on the Hummer:

“Bankrupt General Motors Corp. said today that it had reached an agreement to sell its Hummer brand of sport utility vehicles to an undisclosed buyer.”

Hummer Facing End of the Road in the UAE? ETE, 4 June 2008.
UAE Loves the 2006 Hummer H3, Hummer.

Dr Geoff Pound

Images: GM’s Middle East President Mike Devereux; Hummer 2009.