GM shops Hummer to possible buyers

DETROIT, Oct. 18 (UPI) -- General Motors Corp. says it has begun shopping its struggling Hummer line of super-sized SUVs, even as it negotiates a possible merger with Chrysler LLC.

A company spokeswoman told The Wall Street Journal that GM has sent out sales prospectuses to potential buyers of the Hummer brand, but wouldn't reveal what the automaker's timetable for a sale was. The newspaper said new Hummer CEO Jim Taylor would head possible sale negotiations.

GM officials have said the company could run short of cash within a year because of slumping sales and a looming recession, and a sale of the Hummer line could bring in some much-needed cash. The Journal said cash is the main motivation behind a possible Chrysler buy -- that company has cash reserves of $11.7 billion.

Demand for big sports utility vehicles collapsed this summer amid high gasoline prices and a faltering economy. GM was forced to launch a strategic review of its eight SUV brands as Hummer sales fell off the map. GM at first said it was open to perhaps retooling the Hummer line, but that's now off the table and the automaker is intent on a sale, the Journal said.