Saturday, October 10, 2009

Garage Sale at GM

Hong Kong investor Suolang Duoji has reportedly bought the Hummer brand off GM for $150 million. The average retail price of a Hummer SUV is around $40,000. GM's sale price is the equivalent of 3750 units. To give you some idea how piddly this is, in 2007 Hummer sold over 5,000 units.

GM were hoping for over $500 million for Hummer. If this overestimation of worth is commonplace throughout US boardrooms, there must be some very thin paper covering some very large cracks.