General Motors Corporation announced it has entered into a memorandum of understanding (MOU) with a buyer for HUMMER, its premium off-road brand. This transaction is as the result of GM’s strategic review of the HUMMER brand and the company’s ongoing restructuring efforts.

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This announcement solidifies the future of this iconic brand. Customers can take confidence that the same great level of service and support they have received from GMSA and our dealer partners will continue.

HUMMER customers can continue to enjoy the peace of mind motoring they currently receive, backed by leading levels of service and our ongoing commitment to honouring all warranty agreements. Furthermore, as from early May, new HUMMER purchases are backed by the most comprehensive servicing package in the industry today – GM’s Total Confidence plan which covers our Chevrolet, Isuzu, Cadillac, Opel and HUMMER brands and includes the following:

  • Warranty Protection with our fully-backed 5 year / 120,000 kilometre warranty
  • Rest-assured Payment Protection with up to nine months of payments on your GM car covered by us if you are retrenched
  • The stress-free response, security and convenience of the 24-hour comprehensive Roadside Assistance Program for a period of 5 years or 120,000 kilometres, whichever comes first.

It is our understanding from this announcement that future assembly of the HUMMER will be consolidated into a single location at Shreveport in the United States where right and left hand drive petrol and diesel variants will continue to be produced for global markets.

As a result, South Africa will import H3 products from the newly formed HUMMER entity and will distribute these vehicles through our premium dealerships in South Africa. Customers can be assured that they will continue to benefit from the high quality service offered by our premium channel outlet.

Since all engineering and design on HUMMER is developed in the U.S and 95% of components are sourced from the U.S., the impact on South African operations is minimal. We are committed to engaging with the new owners to seek export opportunities to the U.S for our local suppliers.

The relocation of HUMMER assembly to the U.S. has already been contemplated within GMSA’s restructuring initiatives, which means that there will be no further impact on our employment levels. Furthermore, we are focused on bringing high volume platforms to our plant which will improve the efficiency of our operations.

We are excited about this new partnership and opportunity for HUMMER and look forward to being part of the brand’s ongoing success in the South African market. Furthermore, our commitment to this market can be evidenced by the R4 Billion investment we and our dealers have made since 2004 in our industry leading distribution and after sale support.

We are focused on the continued investment in the future of our South African operations and our dealer network as demonstrated by our R150 million investment in our new Vehicle Conversion and Distribution Centre, our planned R250 million investment in a Pan African Parts Distribution Centre and the ongoing introduction of great new vehicles into this market, including the new Chevrolet Cruze in the third quarter of this year.

The decision on the continuity of the HUMMER brand, along with our customer service initiatives and recent investments in South Africa; mark major steps in the continued strengthening of our position in South Africa.

About General Motors:

General Motors Corp. (NYSE: GM), one of the world’s largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries.

With its global headquarters in Detroit, GM employs 244,500 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany.