Steane Klose | Aug 19, 2008

Dwindling sales might be the least of the problems facing GM's Hummer brand with reports indicating that negotiations with potential buyers Changfeng and Mahindra & Mahindra (MM) have dissolved. It's no secret that GM has been looking to off-load the marque for a while now, but it appears parting company with the iconic brand may be more difficult than expected.

Chinese manufacturer Changfeng has gone so far as to tour the manufacturing facility, but in the end has opted to pass on the chance to buy. The numbers simply don't add up. The Hummer brand is struggling for traction in an increasingly eco-conscious global market - which does not bode well for future sales.

For MM however, it's a case of conflicting interests as the company’s vice-chairman Anand Mahindra explained;

“I want to say categorically we are not pursuing Hummer. The company is currently pursuing an environmentally-conscious image for its products, and feels the Hummer brand would damage that."

There's still a chance that Tata - one of MM's direct competitors - might be interested. Of course, if GM is unsuccessful again it may be running out of potential buyers. Chances are that any sale will involve substantial losses for GM.

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