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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.

Out With A Bang: Hummer dealer giving away free shotgun with every new vehicle purchase

Lynch Hummer dealership in Chesterfield, Missouri - Click above for image gallery
You've heard of art imitating life? Well how about life imitating war? That's another story entirely, but not so far fetched when it comes to the Hummer. The sport-'ute that met the public eye during Operation Desert Storm has all but completely gone through its entire life cycle in the intervening years: first as a military-only vehicle, the original model became available to the public, then GM bought the rights and started churning out pickup-based H2s and H3s, the U.S. armed forces went back Iraq, the original H1 was discontinued and now GM is preparing to wind down the brand entirely. But not before one last pistol-shootin' hoorah, courtesy of the one dealership that arguably sees the truck for what it is more than any other: Lynch Hummer.
The St. Louis-area franchise made headlines last year when they started filling their emptying showroom with gun racks, selling firearms to make up for dwindling sales in the gigantic SUVs. Now the dealership is connecting the dots with a one-of-a-kind promotion: Buy a Hummer, get a free shotgun.

Mil-Spec 003 First Drive Review | The ultimate Hummer H1

We're in something of a golden age for automotive restomodding, and into a heady mix that includes Singer's reimagined 911s, Icon's fancy off-roaders, and lots of updated Land Rovers. The latest company with ambitions to become a top-tier custom car brand is Mil-Spec, which aims to do what the aforementioned companies do, but with the big, brash, blunt Hummer H1. And in particular, the company is aiming to make its Hummers a compelling alternative to a used Hummer H1 Alpha. The Alpha is generally considered to be the best of the breed with the most powerful diesel engine offered, larger brakes, and a nicer interior compared with its predecessors. To find out whether the company's early efforts live up to that ambition, Mil-Spec invited us to drive their third completed vehicle, Mil-Spec 003. It started life as a 1995 Hummer H1, and as with all of Mil-Spec's vehicles, it was completely disassembled, and the body and frame media-blasted down to metal. The frame and related components are then powder-coated with a black gloss finish. The truck's aluminum body, in this case a four-door hardtop pickup variant, but is coated in a resilient bedliner-like material designed for easy care. Bits of Kevlar are mixed in with the material for strength, and it can be tinted different colors and have rougher or finer textures. Underneath the body, one of the five different engines that were available on the H1, usually a diesel V8, is replaced with a 6.6-liter Duramax LBZ turbodiesel V8. This engine was available on heavy duty Chevy and GMC pickup trucks, and a related engine was used in the Hummer H1 Alpha. Whereas the engine in the H1 Alpha made 300 horsepower and 520 pound-feet of torque mated to a 5-speed automatic, the Mil-Spec's LBZ has had turbo upgrades and a different ECU tune allowing it to produce 500 horsepower and 1,000 pound-feet of torque. It's also coupled to an Allison 1000 6-speed automatic transmission. The mechanical upgrades don't stop with the engine and transmission. The inboard brakes are given drilled and vented discs, and an ARB Air Locker locking rear differential fitted. Dual auxiliary transmission coolers also make an appearance and can be switched on as needed. The 003 received 20-inch wheels with 38-inch mud terrain tires, but larger tires can be added if desired.