India's Mahindra eyeing Hummer?

2003 Hummer H2

Reuters News Agency

NEW YORK–General Motors Corp. is in talks with Indian automaker Mahindra & Mahindra and automakers in Russia and China about selling its Hummer brand, sources familiar with the matter said.

One source close to the discussions said Mahindra was not very interested at this time as it has plans to launch a small sport utility vehicle in the U.S. market next year.

Mahindra would like to launch that SUV under its own brand and has signed up about 250 dealers to distribute the vehicle, the source said. But talks with GM – still in initial stages – were continuing, the source added.

GM declined to comment. Mahindra was not immediately reachable for comment. The sources did not name the Russian and Chinese companies talking with GM.

GM, which has said it will try to raise up to $4 billion (U.S.) through asset sales, has hired consultants and investment bankers to review the Chinese market for potential buyers for GM assets, one of the sources said.

The struggling U.S. automaker, which has lost more than $51 billion over the past three years, said in June that it was reviewing its Hummer brand, which has become synonymous with gas-guzzling excess and has hurt GM's image at a time when consumers are demanding more fuel efficiency.

Amid high gas prices, interest in buying a brand that gets only nine to 15 miles a gallon has been thin and continues to shrink, one source said.

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