The rapidly slimming General Motors might soon cast off another brand, according to a Chinese media report. General Motors is considering selling its Buick division to the Shanghai Automotive Industry Corporation (SAIC), according to financial newspaper the Shanghai Securities News.
The deal could potentially involve a sale the Buick name only, or it could include the sale of plants, tooling, and designs to SAIC. Buick is extremely popular in China, despite its relatively limited success in America.
The Obama administration has apparently asked General Motors to slim to just three brands, the report says. With the Hummer brand up for sale,Saab’s future in question, Saturn likely to be spun-off or killed, Pontiac being phased out, and Opel potentially for sale, it’s easy to see how this might be achieved. In fact, wouldn’t be surprised if Chevrolet, Cadillac, and GMC are the only brands left standing when the dust settles.
General Motors is hoping to restructure to the satisfaction of the Obama administration by the end of May, in order to receive more government aid. If this fails, GM will be forced into Chapter 11 bankruptcy proceedings.
Although the sale of Buick is strictly a rumor at this time, it opens the door to a great deal of speculation. For example, what would happen to Buick’s stylish new U.S.-specific 2010 LaCrosse? We’re pretty sure GM would not scrap the model entirely. Could it become a Chevrolet? We wouldn’t rule that out.
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