Almost 20 years after AM General sold the rights to the civilian Hummer brand to General Motors, the automaker could potentially buy the company outright. Reuters reported on Monday that AM General has put itself up for sale, according to sources, and GM is one of many suitors interested in purchasing it.
AM General builds the military-spec Humvee and was responsible for building the original Hummer H1. The latter debuted in 1992 and quickly became a cultural icon in the United States. AM General sold the rights to the Hummer brand in GM in 1999 and also produced the H2 for the automaker until 2009. However, AM General did not build the H3.
According to the report, GM has lined up amid heated competition to snap up the military-vehicle manufacturer. Others allegedly interested in purchasing the company include General Dynamics, Oshkosh Corp, and BAE Systems PLC. Each of the companies are currently competitors to AM General, making GM an odd man out. The report also claimed Fiat-Chrysler Automobiles is interested in the company, too.
AM General could be valued at $2 billion in a sale, partially due to its favorable tax treatment as a limited liability corporation (LLC). The sale also comes as the United States Army is working to modernize its forces and fielding prototypes for its next-generation combat vehicle, due in 2022.
For GM, purchasing AM General would provide an incredible bolster to its budding GM Defense division. GM Defense marks a return to military defense work after the automaker sold its General Dynamic defense unit in 2003. We’ve seen GM Defense’s work entail the Chevrolet Colorado ZH2 and the self-driving, hydrogen-powered SURUS platform concept. Acquiring AM General would give the automaker a shoe-in for delivering a final product to the Pentagon.
And who knows. Perhaps adding AM General could spur the rebirth of a Hummer-like vehicle? Doubtful, but GM clearly sees value in the company.
Comments
A military contractor like amG could probably use greater supply chain efficiencies and buying power that comes with a company like General Motors.
“Perhaps adding AM General could spur the rebirth of a Hummer-like vehicle”
Bring on the Chevrolet Apahce HX and ZR2!
Why is AMG selling? Are they not profitable?
If & when GM completes the buyout, this could also open doors for them to bring back the HUMMER BRAND altogether and re-introduce updated, more efficient versions of the H1 – H2 – H3 – and a new H4 series of vehicles. Imagine the more fuel efficient engines & transmission choices to bring a totally new flavor to the brand! This could also make for an UPSCALE brand of SUVs for GM in general (think MERCEDES G-WAGON & LAND ROVER)
“This could also make for an UPSCALE brand of SUVs for GM in general (think MERCEDES G-WAGON & LAND ROVER)”
And step on GMC Denaili’s and Cadillac’s toes? Not going to happen.
No I meant even beyond what GMC and Cadillac is presently offering. That would be beyond the present offering. It could really work as a Specialty Brand (which is what it was) It didn’t interfere before with Denali & Cadillac, so why would now be any different???
“It didn’t interfere before with Denali & Cadillac, so why would now be any different???”
Because I think there would be something tragically wrong with GM if a Hummer SUV could command more than a Cadillac SUV.
A Cadillac (no matter if it’s an SUV, sedan, or crossover) is supposed to be the pinnacle of not just GM efforts, but the best luxury car you can get from America.
If there was any validity in saying ‘The Cadillac of X’, then a Hummer shouldn’t be able to usurp Cadillac from that storied position.
When I think of luxury vehicles, I don’t think of Hummer at all.
If a luxury SUV from GM that was supposed to be ‘upscale’ was sold as anything other than Cadillac, there wouldn’t be reason for Cadillac to exist. If Cadillac isn’t the best you can get from GM, then what’s it doing here?
(((my final comment on this)))
I think it would work BRILLIANTLY because it is totally different from CADILLAC. Cadillac is known for upscale Luxury & Performance (V-series) whereas Hummer is known for it’s Upscale OFF ROAD Capabilities. It would work beside Cadillac and not necessarily above. (Apples & Mangoes). The ESCALADE PLATINUM for instance, is not going to be used for serious offroad capabilities. But Upscale in Off Road Performance and durability for a premium price. Just now with the more efficient engines and transmissions. This would be great for GM also for the benefit of Government Contracts which would also increase during times of war, military practices, etc. From a Corporate standpoint… why not!
“The ESCALADE PLATINUM for instance, is not going to be used for serious offroad capabilities.”
Then you’ve just shown where GM could focus its efforts on making an upscale off road luxury SUV. Reviving a dead brand to fill a niche luxury market is a waste of money if GM already has the hardware AND the luxury nameplate to satisfy that niche.
Everyone knows that Cadillac means luxury. Everyone also knows that Hummer is stone dead and wasn’t a luxury brand, even when it was at its peak.
The government contracts argument is moot, as the modifications required for government use verses civil use is worlds away. No government, not even the American government, is going to buy stripped out luxury SUV’s that have to be retrofitted with armour platting to serve in combat environments; vehicles that weren’t otherwise purpose-built for combat duty.
If you’re going to say that the German government uses G-Classes in their military, show me the G-Class that made it’s way to the front lines and wasn’t used for supply or medevac.
Humvee/Hummer would mak a fantastic “professional grade” Jeep rival and be sold as a GMC sub brand therefore easing distribution. These products would need unique, military-grade plaforms, and design unlike anything else sold by GM. These vehicles could challenge Land Rover, too.
Guys, the Hummer was made at the Mishawaka plant, which was the commercial vehicles section. That was sold a year ago to a Chinese company. The Chinese probably own the design.
South Bend is the military plant.
GM can sell a plant without handing over decade old plans for a defunt brand.
Anyway, why would GM build early aughts looking Hummers? Design has changed a lot over the last generation. I think that Barra would consider a redesign fit to chase Jeep and Rover.
Humvee and/or Hummer would probably be a niche brand anyway. Sort of like a Corvette but for Gen X and some Millenials.
The majority of their business is defense. It is not clear that AMG has any recent success in the commercial world, but maybe with GM help they could do it.
Why wouldn’t the more typical defense contractors be a better buyer?
Do it, I’m surprised they haven’t bought Navistar (International) out yet..
Hummer is back.
Well here is the issue. Hummer was expensive to create and very expensive to put down. Bob Lutz said he regretted not making Hummer a GMC. He said it would have been much easier and profitable to treat the Hummer models as GMC models vs their own division.
If and it is a big if that if GM Buys AM General it will be retained as a military contractor. Also they would focus on their commercial vehicles like step vans and mail vehicles. Look for EV fleet technology to be involved.
As for product for the public it could happen but it would be st GMC or Cadilkac. They would be a part of an existing dealer not a stand along.
But GM is not the only one here with interest. There’s deep pockets at General Dynamics.
Here we go again. Tell the governments to get their bailout cheque books ready.