Hummer going Gulf

TWO GCC investors have expressed interest in buying General Motors’ Hummer brand, the company’s Middle East chief has said.

At home in the USA the military-derived vehicle is proving unpopular due to its high fuel consumption in a period of economic downturn and escalating costs at the petrol pumps.

But in Bahrain and neighbouring Gulf States – where motorists have not been hit by rising prices at the pumps – the high-wheeled, multi-purpose military-style vehicles are as popular as ever.

In fact, the first Hummer Driving Academy outside the US was opened near the Bahrain International Circuit last year by iconic motoring figure, Bob Lutz, GM vice-chairman of global product development.

At the time Steven Umfreville, commercial director of the BIC, said: “BIC is not worried about the future of Hummer in the region or the ‘overview’ that is going on with General Motors. As a global company it acts on market demands and we have a different one from the States.

“We are very fortunate in the Middle East because petrol is reasonably priced and Hummers are a very attractive proposition in this region.

“In my opinion the Hummer can stand alone because it is a lifestyle brand – it is the best 4x4 vehicle that you can get your hands on.”

And mini versions of the vehicle are also popular in Bahrain with golfers reportedly snapping them up in readiness of the Royal Golf Club’s opening at Riffa Views in November.

Sales in the Middle East and Eastern Europe are also still booming so it would be no surprise to see a Gulf investor take on the iconic vehicle.

GM Middle East managing director Terry Johnsson said: “There has been interest from various parties within the Gulf… there is a precedent in the cases of Aston Martin, Ferrari or Daimler and those kinds of solutions could be very realistic.”

And the company’s chief executive Rick Wagoner confirmed the car maker was readying sales documents for its Hummer brand and had initial expressions of interest from potential buyers that it hoped to develop into formal sales talks.

“We have had two separate investors raise their hands as being interested but I don’t know what’s happened since then,” Johnsson said.

In the car industry, Abu Dhabi’s Mubadala Development bought a five per cent stake in Ferrari in 2005, while Kuwait’s Investment Dar last year bought half of Aston Martin.

But analysts have said they expect the Hummer brand to be a tough sell for GM, which aims to raise up to $4 billion in asset sales through next year as part of a plan to conserve cash and ride out a brutal downturn in US sales.

Earlier this month car makers from India, Russia and China reportedly backed off after holding exploratory talks on the brand.