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4 Aug, 2008 12:51

GM consider Hummer sale – to Chinese or Russians

American car giant General Motors is mulling over the future of its Hummer off-road vehicle, including the possibility it could be sold to a Russian or Chinese company.

Drivers in the U.S. may be opting for fuel-efficient vehicles, but in Russia, big is still beautiful.

GM has a market share of over 11% so far this year and there is speculation that Hummer could be sold to a local company.

General Motors is considering phasing out its super-sized Hummer brand Stateside- putting a question mark on its strategy in Russia.

Andrey Kolosov, marketing director of GMCIC, said: “GM is undertaking a major review of the Hummer brand, the outcome of which could actually be dumping the brand as a whole or selling the brand as another option, or anything in between.”

Sport Utility Vehicles account for 14 % of Russia’s fast-growing car market, well behind the U.S. figure of 25%.

That has led to speculation that GM could sell its Hummer brand to a Chinese, Indian, or even Russian company.

However analysts say the SUV market only has a limited lifespan, perhaps only two or three years.

“To tell the truth, I would be really surprised if they finally go ahead with this purchase because it really does not make sense for them,” says analyst of VTB Elena Sakhnova.

That is because domestic producers are currently focused on producing cars for the mass market and upgrading their technology.

Right now, analysts say there is little scope for a Russian car maker to acquire a foreign premium brand.