Today, on its way to the G20 summit in London, Air Force One landed at Keflavík International Airport. During the brief fuel stop, President Obama signed a contract with the Icelandic government, agreeing to sell the Hummer name and factory to Iceland on behalf of GM.

It is a good deal for everyone. Iceland’s government will pay USD 1 billion (EUR 760 million) for the factory and the Hummer name over the next ten years, creating 4,000 to 6,000 jobs here in Iceland. And the US government will get the money, subsidizing the amount they have already given to GM.

The mastermind behind this good deal is former Prime Minister and former governor and chairman of the Central Bank of Iceland Davíd Oddsson, who is a devoted Hummer fan, the proud owner of two Hummers, H1 and the smaller H3.

Same as Minister of Finance Steingrímur J. Sigfússon, who owns a Hummer H2. He will sign the deal with GM on behalf of Iceland’s government along with our President Ólafur Ragnar Grímsson. Grímsson owns a Hybrid Lexus.

The Hummer factory will be moved from the US as soon as possible to its new location by the harbor in Hafnarfjördur, just outside Reykjavík.

It’s a good place to export the vehicles and the price will be at least 25 percent lower than when the Hummer was produced in USA. Why? Because of much lower energy costs in Iceland and the devaluation of the Icelandic króna.

It is hoped that production will start as early as July. Experts from SAAB, Sweden, will lend Iceland a helping hand. Our Nordic friends.

GM will distribute the vehicle in the US under the brand of Hummer Iceland and sell the technology behind it, spare parts and engines for the next 11 years, until 2020.

One out of every three cars in Iceland is a SUV, 4x4. We have the world’s best testing ground for four wheel drive cars. Bad roads, bad winter weather.

We have high hopes here in Iceland that this initiative will help the economy big time and that we will in the near future come up with new and better models: Hummer H4, small and economic, and Hummer H zero, for adventure and the Third World.

The Third World needs a spacious people and goods carrier, which takes them from A to B on roads that are not what we call roads. Strong big SUVs. A good goal.

Another good news story: We are playing Scotland in a World Cup qualifying match in football in Glasgow tonight.

A Scot, Sir Alex Ferguson, manager of Manchester United, said in a radio interview with Icelandic national broadcaster RÚV earlier today, that Iceland will win, probably three or four to nil. He knows, the world’s best football coach.

So bet on Iceland. And buy Hummer, after July 1.

Hummer, made in Iceland. Fantastic. Thank you Davíd Oddsson for creating all these new jobs. A job well done.

Páll Stefánsson – ps@icelandreview.com