GM says it's not bidder for Hummer Maker AM General
Mishawaka, Indiana, November 11, 2002; Joe Miller writing for Bloomberg reported that General Motors Corp. said it's not among four bidders to buy closely held AM General Corp., the builder of Hummer sport-utility vehicles for the world's largest automaker.
AM General's parent, investment company Renco Group Inc., is negotiating the possible sale of part or all of the vehicle maker to an investor outside the auto industry, General Motors spokeswoman Wendy Orthman said. "GM is not on the list," she said. AM General spokesman Craig MacNab said his company won't have a decision for a few months.
General Motors in 1999 bought the rights to the Hummer brand and an option for a minority stake in AM General. As part of that agreement, AM General builds the Hummer H1 and H2 sport-utility vehicles for the automaker. The Mishawaka, Indiana-based company also builds Humvee military vehicles, on which the H1 is based.
Strong sales of the General Motors-designed H2, which has a base price of $48,800, boosted investor interest in AM General, MacNab said. New York-based Renco, owned by financier Ira Rennert, is talking with four investment companies and also is considering the sale of AM General shares to the public, he said.
AM General plans to use its experience with the H2 to win more assembly business from General Motors and other automakers, MacNab said.
Renco bought AM General in 1992 for $133 million from LTV Corp. The South Bend Tribune in Indiana reported earlier today that Renco may sell AM General.