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General Motors could turn Hamtramck into its electric pickup, SUV hub

Electric off-roaders could revitalize the Detroit-Hamtramck factory that General Motors previously announced it will close. While official details remain shrouded in secrecy, analysts believe the plant will be re-tooled to manufacture at least three electric models due out during the early 2020s. The plant's scheduled closure was one of the grievances the United Auto Workers (UAW) union cited when it embarked on a 40-day strike in September 2019. General Motors agreed to keep it open without shedding much light on what it planned to build there. Analyst at LMC Automotive told the The Detroit News they believe an often-rumored electric SUV that will resurrect Hummer's name, image, or both will be one of the models assigned to the Hamtramck plant. Battery-powered variants of the GMC Sierra and the Cadillac Escalade will be made there, too, as will an enigmatic van. LMC Automotive's Jeff Schuster believes the van will come first; it could enter production as early as 2021. The Hummer — which might also be offered as a pickup — will follow before the end of 2022, while the Sierra and the Escalade will both arrive in 2023. We're taking this report with a grain of salt, though, because only one of the aforementioned models has been announced by General Motors. Rumors of a Hummer resurrection emerged in the summer of 2019, just a few weeks before we heard unverified reports of a battery-powered variant of the next-generation Escalade. General Motors confirmed plans to enter the burgeoning electric pickup truck segment, which Ford, Rivian, and Tesla also have their sights on, but it hasn't detailed how or when. The van is a mystery. General Motors refused to comment on the report. It previously announced it will keep Hamtramck open, and invest $3 billion to build electric vehicles there. The investment will create 2,225 jobs. Inaugurated in February 1985, the Hamtramck factory has churned out a diverse selection of models over the past 34 years, including Cadillac's Eldorado, Seville, and Allante, the Oldsmobile Toronado, the Buick Riviera, and more recently, gasoline-electric Chevrolet Volt. General Motors announced plans to close Hamtramck in 2018, but it quickly backpedaled and extended its lease on life until 2020 by keeping the Chevrolet Impala and the Cadillac CT6 around for a few additional months.

Humvee maker AM General reportedly for sale, with interest from FCA, GM

WASHINGTON — AM General has put itself up for sale and has hired investment bank Macquarie Group Ltd to seek potential bidders in a deal that could value the builder of Humvee military vehicles at more than $2 billion, people familiar with the matter said this week. Potential bidders include competitors in the military ground vehicle market, such as General Dynamics, Oshkosh Corp and BAE Systems, according to two people familiar with the matter. Automakers like Fiat Chrysler and General Motors may also be potential buyers. GM licensed Hummer from AM General in 1998 to build civilian SUVs. None of the companies would comment or reply to a request for comment. The South Bend, Indiana-based AM General is currently owned by private equity firms. A possible sale of AM General follows a rash of deals over the past 18 months among defense contractors. But relatively fewer makers of defense equipment have gone on the auction block. Last year, United Technologies acquired Rockwell Collins for $30 billion, and in March, TransDigm Group continued its acquisition spree with a $525 million deal for Extant Components Group. AM General could fetch about 10 times its annual earnings of $160 million, one of the people said. The company's favorable tax treatment because of its current status as an limited liability corporation, would allow a buyer to reduce the company's taxable earnings for 15 years. That coupled with recent contract awards could push the ultimate value of the company to over $2 billion in a sale. The sale, should it happen, comes as the U.S. Army is gearing up for a broad effort to modernize its forces, including seeking prototypes of its Next-Generation Combat Vehicle in fiscal year 2022. Last month, AM General was awarded an Army contract for as many as 2,800 new M997A3 High Mobility Multipurpose Wheeled Vehicle (HMMWV) ambulances. The contract could be worth as much as $800 million if all options were exercised, AM General said at the time. Last year, the Pentagon awarded AM General a $550 million contract to deliver HMMWVs for use as protected weapons carriers, cargo transporters and ambulances to Afghanistan, Iraq, Ukraine, Jordan, Slovenia, Bahrain, Columbia, Bosnia and Kenya as a part of a larger Foreign Military Sales agreement. The sale of AM General offers an opportunity to purchase a prime contractor that delivers a finished product to the Pentagon, and not just an add-on system or service.

AM General's new CEO has strong military roots

AM General has a new president and chief executive officer. Current CEO Charlie Hall is retiring from the company. In his place, the defense and automotive manufacturer has named industry veteran Andy Hove. Though primarily a defense contractor, AM General has produced a number of civilian vehicles as well. The company is perhaps best known for the Hummer (or Humvee in military parlance) and continued producing both the original H1 and the subsequent H2 after selling the brand to General Motors. Even after GM shut down the brand, AM General continued producing Humvees for military use and as a civilian kit. The company is also behind Mobility Ventures, which produces purpose-built wheelchair-accessible vehicles, assembles the R-Class for Mercedes-Benz, and has been linked to potential commercial van and pickup truck assembly for GM as well. Based in South Bend, IN, AM General shares its roots with the Jeep brand. It was split off from American Motors Corporation after the latter was bought by Renault and then by Chrysler. Today it's owned by New York-based investment firms Renco Group and MacAndrews & Forbes. A former Army officer, Hove arrives at the company with considerable experience in the defense industry, particularly in vehicle manufacturing. He has previously served as president of HDT Global and before that of Oshkosh Defense. Prior to that he headed up the Bradley tank program for BAE Systems, where he increased sales from $250 million to $2 billion within five years. His departing predecessor Charlie Hall was named CEO in 2011, assuming day-to-day responsibility for the company's operations from the suitably named chairman James Armour. Related Video: AM General Announces Vehicle Manufacturing Industry Leader Andy Hove To Serve As Chief Executive Officer Hove Succeeds Retiring CEO Charlie Hall SOUTH BEND, Ind., Dec 8, 2015 – AM General, the global leader in light tactical vehicles, today announced that Andy Hove will serve as the company's new Chief Executive Officer and President, succeeding Charlie Hall who is retiring. Hove brings to AM General a track record of excellence at a diverse array of defense and commercial companies in the United States and around the world. Hove most recently served as the President and CEO of HDT Global where he rapidly proved the quality of his leadership in helping transform the company.