GM Closes Hummer and Begins Clearance Sale

General Motors is shutting down its Hummer brand, after failing to find a buyer for the troubled SUV manufacturer. The deal to sell Hummer to Sichuan Tengzhong Heavy Industrial Machinery failed to receive Chinese government approval in February, so GM has decided to move forward with closing the brand, said Hummer spokesman Nick Richards, quoted by Automotive News.

He added that Hummer CEO Jim Taylor has retired, effective immediately. Taylor took over Hummer in late 2008 after playing key roles at Cadillac, including general manager.

The news of the Hummer shutdown was brought to its dealers yesterday morning, during a conference call made by Jim Bunnell, GM's general director of network support. Bunnell explained dealers that GM had not found any viable buyer. There are currently 153 stores who sell Hummers in the US

General Motors put Hummer up for sale a year before the SUV manufacturer declared bankruptcy, in June 2009. It has also sold Saab and is shutting down Pontiac and Saturn as part of its rescue plan, with Hummer being next on the list. "This is for real. I cried big crocodile tears", said Texas dealer Will Churchill, quoted by the Automotive News.

There are, however, 2,200 Hummers still in stock, so the company will run incentives through the end of April. Consumers can get 0 percent financing for 72 months or choose consumer cash.

The discounts are $4,000 for 2010 H3 and H3T models, $5,000 for 2009 H3Ts and $6,000 for 2009 H2 and H3 SUVs. In the following days, Hummer will run ads promoting the discounts in 20 key markets.
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