Humvee manufacturer AM General has put itself up for sale. The company has retained investment bank Macquarie Group Ltd to identify potential bidders, potentially valuing the owner of the Hummer brand at about $2 billion.
Reuters reports AM General already has several interested parties. Potential bidders include competing manufacturers of military vehicles, such as General Dynamics, Oshkosh and BAE Systems. Another source suggests that automakers General Motors and Fiat-Chrysler Automobiles are expressing potential interest in AM General as well.
Based in Fort Wayne, Indiana, AM General is currently held by several private equity firms. The company was recently awarded a an Army contract for as many as 2,800 new M997A3 High Mobility Multipurpose Wheeled Vehicle (HMMWV) ambulances. The contract has a potential value of up to $800 million.
Currently the company only builds its military-spec Humvee at its Fort Wayne assembly plant, which also built the Hummer H2 until it exited production in 2009.
Details surrounding GM and FCA’s interest is unclear, but GM did establish a new defense division last year named “GM Defense.” It is plausible the automaker sees potential in expanding its military services with an acquisition of AM General. Or perhaps the company sees the global SUV boom has a means to bringing the Hummer brand back from the dead?