Russian Billionaire in Talks to Buy Hummer Brand

Russia's richest man, Oleg Deripaska, has held talks with General Motors about buying Hummer, the brand of gas-guzzling cars modeled on the US military's heavily armored Humvee combat vehicles.

The billionaire oligarch has had exploratory contact with GM, although any deal is some way off, sources close to the negotiations told Reuters.

Hummer's future has been in the balance since early June when GM announced a strategic review of the business and called in Citigroup to advise on financial options. Sales of the vehicles have plummeted by 40% in the US this year.

Deripaska, who is worth an estimated £14bn, made his fortune in aluminum and recently purchased a stake in Magna International, a Canadian car parts manufacturer. He is thought to be keen to get Magna involved in making Hummers.

A GM spokeswoman declined to comment on the discussions, saying only: "We are working through the process of a strategic review of Hummer."

The typical Hummer consumes a gallon of petrol every 10-15 miles, weighs in at 2.6 tonnes, costs at least £25,000, and is loathed by environmentalists. Owners have included Wayne Rooney, Johnny Hallyday and Arnold Schwarzenegger.

The cars have fallen victim to soaring fuel prices which have prompted consumers in the US and Europe to look for more fuel-efficient vehicles. Hummers remain popular in emerging markets, including Russia. Other possible buyers include India's Mahindra and Mahindra.

Deripaska recently overtook Chelsea football club's owner, Roman Abramovich, to top Russia's rich list. He owns a £25m mansion in Belgravia and is chairman of the aluminum company RusAl.

Detroit-based GM has suffered heavy losses and is anxious to sell assets to raise money. Speaking on a visit to Thailand yesterday, GM's chief executive, Rick Wagoner, said: "We are getting some significant interest in our asset sales, including Hummer, but probably it won't be completed immediately."