HUMMER MANUFACTURER AM GENERAL UP FOR SALE: WHO IS BUYING?Posted in News on October 9, 2018
According a recent report by Reuters, AM General has put itself up for sale. AM General, builder of the Humvee military vehicles, has hired investment bank Macquarie Group Limited to seek bidders for the company. The company could be valued as high as $2 billion according to the report.
Potential bidders include several competitors in the military ground vehicle market as well as a couple of automakers. Those automakers could include Fiat Chrysler Automobiles (FCA) and General Motors.
AM General is based in South Bend, Indiana, and currently owned by private equity firms. Reuters reports the U.S. Army is looking for prototypes of its Next-Generation Combat Vehicle.
Currently FCA does not manufacture combat vehicles sold directly to the Pentagon. General Motors launched a new military defense division called GM Defense in 2017. GM sold off its original defense unit to General Dynamics in 2003 for $1.1 billion. AM General has an Army contract to provide 2,800 new M997A3 High Mobility Multipurpose Wheeled Vehicle Ambulances. That contract is reportedly worth $800 million. AM General also has a contract to deliver vehicles to several countries under a Foreign Military Sales Agreement.
In the late 1990s, AM General sold brand rights to GM to build the civilian versions of the Hummer known as the H1 and H2. GM stopped production of the H2 in 2009.