New venture takes reins of Hummer

coolcaddy · 08-11-2004, 08:24 PM

New venture takes reins of Hummer
GM will still retain rights to profitable civilian SUVs
Detroit News staff and wire services

SOUTH BEND, Ind. — A holding company owned by New York financier Ronald Perelman will take over AM General LLC, the maker of the military Humvee and the civilian-model Hummer, in a deal announced Tuesday.

Perelman’s company, MacAndrews & Forbes Holdings Inc., will form a new venture with AM General’s current owner, The Renco Group Inc. of New York, the companies said. Renco will contribute all of its ownership of AM General to the new venture and MacAndrews will contribute cash. Financial terms of the deal were not disclosed.

MacAndrews will be the managing partner of the venture, but current management of South Bend-based AM General will remain in place.

AM General builds the Humvee, a military vehicle that first saw action in the 1991 Gulf War, at a plant in nearby Mishawaka. The Humvee developed a cult following when Arnold Schwarzenegger helped persuade AM General to sell a consumer model, the Hummer, in 1992.

The company now builds Hummer models for General Motors Corp., which acquired the Hummer brand name in 1999.

GM expects to retain the licensing rights to Hummer vehicles, one of its most profitable brands, after the sport-utility’s manufacturer is sold.

“We will continue to have rights to the Hummer name,” GM spokesman Pete Ternes said Tuesday. GM markets the Hummer H1 and Hummer H2, based on the design of armored transport vehicles used by the U.S. military.

source

SUPERBADD75 · 08-11-2004, 11:36 PM

what a freaking disaster it would be if they did lose the H1. i hope things stay on the up and up here...

GM_Guy81 · 08-12-2004, 01:41 AM

why doesnt GM just buy the god damn thing outright. They already produce defense equipment and vehicles! Its not like the ability and bureaucracy isnt there.

jarsworldcom · 08-12-2004, 04:44 AM

That could make them a monoply if they did that.

Hudson · 08-12-2004, 08:56 AM

How would they be a monopoly?

tgagneguam · 08-12-2004, 01:37 PM

To me, having a stake in the company affords many of the things that outright ownership provides. But, it costs less. GM is not very deep-pocketed these days, so I'd like them to be a little more judicious with their precious few dollars.

jarsworldcom · 08-13-2004, 04:43 AM

Quote:

Originally posted by Hudson@Aug 12 2004, 12:56 PM
How would they be a monopoly?

Yeah I didn't put much effort into my post last night. What I should have said was if GM aquires AM General that could make them a monopoly. I say that in regards to the fact that there doesn't seem to be many auto makers making military vehicles. So if GM still owns their miliatary division ( I can't recall ) and they buy AM General that could make them a monopoly. That is just my thinking, and I am probably wrong. B)

akumaknight · 08-13-2004, 08:40 AM

That wouldent be a monopoly, that would just be them making miliatry vehichles, no one is stopping ford, or chrysler, or any other auto maker. Now if GM started buying every military vehichle maker that poped up, or basicly forced people to only buy their stuff, THAT would be a monopoly (I'm still not sure how MicroSoft is still one corperation...) Personaly I think it would be best to split all auto makers into three groups per company. GM would be broken appart like this

Saturn
Chevy
Olds

Pontiac
GMC
Buick

Caddy
Hummer
Saab

I think that would make for some awsome vehichles.

Then break up for and every one else in the same fasion.

08-11-2004, 11:36 PM	#2 (permalink)
SUPERBADD75 6.2 Liter Vortec V8 Join Date: Dec 2003 Location: at the corner of walk and don't walk Drives: 2008 Trailblazer LT3 2009 Mustang Posts: 2,899	what a freaking disaster it would be if they did lose the H1. i hope things stay on the up and up here... __________________ Acura: Because if you want a really nice Honda, there's only one choice. "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former." --Albert Einstein - 2008 Trailblazer LT3 - 2009 Mustang SUPPORT AMERICA: BOYCOTT WAL-MART

08-12-2004, 01:41 AM	#3 (permalink)
GM_Guy81 5.3 Liter Vortec V8 Join Date: Feb 2004 Location: Los Angeles, CA Posts: 1,267	why doesnt GM just buy the god damn thing outright. They already produce defense equipment and vehicles! Its not like the ability and bureaucracy isnt there. __________________ "Government at its best is a necessary evil, at its worst it is an intolerable one" - Thomas Paine

08-12-2004, 08:56 AM	#5 (permalink)
Hudson 7.0 Liter LS7 V8 Join Date: Jan 2003 Posts: 5,230	How would they be a monopoly? __________________ Hudson www.carspace.com/hudsonthedog

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08-11-2004, 08:24 PM	#1 (permalink)
coolcaddy 6.0 Liter Vortec V8 Join Date: Jan 2003 Location: Republic of Texas Posts: 1,939	New venture takes reins of Hummer GM will still retain rights to profitable civilian SUVs Detroit News staff and wire services SOUTH BEND, Ind. — A holding company owned by New York financier Ronald Perelman will take over AM General LLC, the maker of the military Humvee and the civilian-model Hummer, in a deal announced Tuesday. Perelman’s company, MacAndrews & Forbes Holdings Inc., will form a new venture with AM General’s current owner, The Renco Group Inc. of New York, the companies said. Renco will contribute all of its ownership of AM General to the new venture and MacAndrews will contribute cash. Financial terms of the deal were not disclosed. MacAndrews will be the managing partner of the venture, but current management of South Bend-based AM General will remain in place. AM General builds the Humvee, a military vehicle that first saw action in the 1991 Gulf War, at a plant in nearby Mishawaka. The Humvee developed a cult following when Arnold Schwarzenegger helped persuade AM General to sell a consumer model, the Hummer, in 1992. The company now builds Hummer models for General Motors Corp., which acquired the Hummer brand name in 1999. GM expects to retain the licensing rights to Hummer vehicles, one of its most profitable brands, after the sport-utility’s manufacturer is sold. “We will continue to have rights to the Hummer name,” GM spokesman Pete Ternes said Tuesday. GM markets the Hummer H1 and Hummer H2, based on the design of armored transport vehicles used by the U.S. military. source

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08-12-2004, 04:44 AM	#4 (permalink)
jarsworldcom 3.5 Liter V6 Join Date: Apr 2003 Location: Midwest Posts: 256	That could make them a monoply if they did that.

08-12-2004, 01:37 PM	#6 (permalink)
tgagneguam 7.0 Liter LS7 V8 Join Date: Aug 2003 Posts: 6,951	To me, having a stake in the company affords many of the things that outright ownership provides. But, it costs less. GM is not very deep-pocketed these days, so I'd like them to be a little more judicious with their precious few dollars.

08-13-2004, 08:40 AM	#8 (permalink)
akumaknight 3.5 Liter V6 Join Date: May 2004 Posts: 230	That wouldent be a monopoly, that would just be them making miliatry vehichles, no one is stopping ford, or chrysler, or any other auto maker. Now if GM started buying every military vehichle maker that poped up, or basicly forced people to only buy their stuff, THAT would be a monopoly (I'm still not sure how MicroSoft is still one corperation...) Personaly I think it would be best to split all auto makers into three groups per company. GM would be broken appart like this Saturn Chevy Olds Pontiac GMC Buick Caddy Hummer Saab I think that would make for some awsome vehichles. Then break up for and every one else in the same fasion.

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