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Tata to Hummer

 hummer sold gas prices oil war tata

Hummer is under review while Tata and Mahindra are constantly on the search for iconic new acquisitions. Could Hummer find a new home in India?
According to a report in India’s Economic Times, representatives from General Motors have approached Tata Motors and Mahindra & Mahindra regarding the possible sale of its ailing Hummer brand.

In a statement released last week, General Motors informed us that its Hummer brand was being placed under a corporate review which could conclude in a radical brand shift, or the potential sale of Hummer to an interested party.

Although the Hummer brand review is in a state of infancy, the economic factors appear to favour the brand being auctioned off. Petrol prices in the US have climbed to $4,00 per gallon (roughly R32,00 per gallon) and a 36 percent down-turn in Hummer sales this year.

Tata, whose historic acquisition of the Jaguar and Land Rover brands from Ford concluded last week, has declined to comment on this latest development, nor has its neighboring rival Mahindra & Mahindra.

Given the aforementioned increases in fuel costs and emission standards, it stands to reason that no US or Japanese automaker would wish to add a model range such as the Hummer’s to their portfolios. However, a large percentage of both Tata and Mahindra & Mahindra’s portfolio comprises trucks and SUVs. These companies are vying with one another to establish a stronger presence on the global automotive stage, so a hugely recognizable brand such as Hummer could well increase awareness in either company.

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