Russian Machines looking to bid on Hummer

[Mr. Wyndham]

Russian 'Undesirable' Makes Play for GM's Hummer
Oligarch with Reputed Criminal Past Reportedly Keen to Buy the Struggling Brand
By JUSTIN ROOD
August 12, 2008

U.S. car buyers may have soured on the iconic gas-guzzling brand Hummer, but a Russian oligarch with a reputed criminal past may be keen to buy the struggling mark, according to a report in a Russian business publication.

Moscow-based Russian Machines, owned by controversial multibillionaire Oleg Deripaska, is one of a handful of companies vying to purchase the Hummer brand from General Motors, the daily Vedomosti reported.

Rivals and foreign prosecutors say Derispaska has engaged in bribery, intimidation and other unsavory practices. The U.S. State Department revoked his visa in 2005 because they were reportedly concerned he had not been honest about his business dealings. U.S. law enforcement officials reportedly believe he is tied to organized crime.

A spokesman for Deripaska Tuesday declined to address the allegations. In the past, Deripaska has denied them.

The allegations add a layer of irony to the possible purchase, as the Hummer has been popular with the would-be outlaw set in the United States. Gangsta rappers like now-deceased Tupac Shakur and "Gangster's Paradise" artist Coolio owned Hummers, as did Christopher Moltosanti, the young ill-fated capo in HBO's The Sopranos.

Coolio reportedly gave up his Hummer several years ago, complaining about the cost to maintain and fuel it.

GM has confirmed they have interested buyers, but a spokesman would neither confirm nor deny that the company had talked with Deripaska.

"We haven't announced any of the discussions that have taken place with any outside parties that are interested in the brand," said Hummer spokesman Nick Richards.

Spokespeople for Russian Machines and its parent company, Basic Element, could not be reached for comment. Deripaska's spokesman said he had no comment on the matter.

This would not be the first time Deripaska made a pass at a member of the U.S. auto industry. In 2007, he announced plans to buy a majority stake in a firm that at the time was a front-runner to purchase the U.S.-based Chrysler Group, a division of DaimlerChrysler AG. The deal did not go through.

GM has confirmed they have interested buyers, but a spokesman would neither confirm nor deny that the company had talked with Deripaska.

"We haven't announced any of the discussions that have taken place with any outside parties that are interested in the brand," said Hummer spokesman Nick Richards.

Spokespeople for Russian Machines and its parent company, Basic Element, could not be reached for comment. Deripaska's spokesman said he had no comment on the matter.

This would not be the first time Deripaska made a pass at a member of the U.S. auto industry. In 2007, he announced plans to buy a majority stake in a firm that at the time was a front-runner to purchase the U.S.-based Chrysler Group, a division of DaimlerChrysler AG. The deal did not go through.