UAW: Hummer, Viper sales conditional

By Jui Chakravorty Das

DETROIT (Reuters) - The United Auto Workers union would not support a sale of General Motors Corp's (GM.N: Quote, Profile, Research, Stock Buzz) Hummer brand or Chrysler LLC's Dodge Viper if changing owners would take production outside the United States, UAW President Ron Gettelfinger told Reuters on Tuesday.

Speaking at the Reuters annual Autos Summit in Detroit, Gettelfinger said he thinks GM made a "pretty good move" in deciding to sell Hummer but he was sad to see Chrysler's Viper on the block.

GM plans to send out financial information about Hummer to potential buyers in a few weeks. Any interest is expected to come from overseas buyers.

Chrysler's Dodge Viper could attract some interest from within the United States but is also likely to draw buyers from overseas.

"We will absolutely not support a sale if production is shifted outside the United States," Gettelfinger said.

GM, which has lost more than $51 billion over the past three years, said in June it was reviewing the gas-guzzling Hummer, which has hurt its image at a time when consumers want better fuel efficiency.

The original Humvees were multipurpose, off-road military vehicles, but maker AM General launched Hummer for civilians in 1992. GM bought the brand in 1999, near the peak of truck sales, and went on to sell the H1, H2 and H3 models.

But as oil prices have risen, sales have plunged. U.S. demand -- comprising the bulk of all Hummer sales -- was down 44 percent through August.

"I think they need to be focused more on the vehicles of the future and obviously there is a market and will be a market for the Hummer, but I don't think they need to be in the business," Gettelfinger said. "I think it is wise on their part to shed it if they can."

GM President and Chief Operating Officer Fritz Henderson on Monday told Reuters the automaker will likely send potential buyers financial information about Hummer in the next few weeks.

Any interest for the niche brand is expected to come from countries such as India and China, where automakers would like to gain a foothold in the U.S. market.

Buyers could also come from Russia and the Middle East, where Hummer has a strong cache and entrepreneurs are flush with cash to spend on what could be considered a trophy asset.

Several likely candidates from those regions have publicly denied interest in the brand but investment bankers have said any asset could sell at "the right price."

In case of a sale, Gettelfinger also stressed the importance of recognizing the union.

"GM is not going to sell that product to anybody if they are going to manufacture it here (and) they are not going to recognize the UAW," he said. "We are not going to stand for that and they know it."  Continued...