http://money.cnn.com/2009/06/02/news/companies/gm_hummer/index.htm?postversion=2009060207 GM deals Hummer to Chinese buyer Bankrupt automaker won't disclose details of deal to sell truck line, but source identifies buyer as Sichuan Tengzhong. NEW YORK (CNNMoney.com) -- General Motors Corp. has signed a deal to sell its Hummer truck unit to a Chinese industrial company, a person with knowledge of the deal said Tuesday. The news comes a day after GM (GMGMQ) filed for bankruptcy protection in New York. The company did not identify the buyer nor name a price, saying only that the deal would close by the end of September. But a source identified the buyer as Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. in China. As part of the deal, some GM plants will continue to build the Hummer brand for the new owner, at least for awhile. The company said its Shreveport, La., plant will keep building Hummers for the new owner until at least 2010. "I'm confident that Hummer will thrive globally under its new ownership," said Troy Clarke, president of GM North America, in a press release. "And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker." GM also said that the deal should protect more than 3,000 jobs in manufacturing and engineering, and at dealerships "around the country." The sale of the Hummer brand to a Chinese company will not impact the production of U.S. military vehicles. Military Humvees are produced by a different company, privately held AM General, based in South Bend, Ind. GM bought rights to the Hummer brand name in 1999. The Hummer and other large vehicles have been a drag on the U.S. auto industry since fuel prices spiked in 2008 and the recession deepened. GM said it sold 5,013 Hummers worldwide in the first quarter, down 62% from the 13,050 that it sold in the same period the prior year. Hummer isn't the only brand that GM is leaving behind. The automaker will also shed its Pontiac, Saturn and Saab brands and cut loose more than 2,000 of its 6,000 U.S. dealerships by next year. That could result in more than 100,000 additional job losses if those dealerships are forced to close. GM filed for bankruptcy hours after Chrysler's bankruptcy process cleared a hurdle when a federal judge approved its asset sale. The GM bankruptcy was hailed by President Obama, who wants a complete overhaul of the U.S. auto industry, even though the Chapter 11 filing is expected to result in the loss of 20,000 jobs and the closure of a dozen facilities. Citigroup (C, Fortune 500) was financial adviser in GM's Hummer deal. --CNNMoney.com senior writer Peter Valdes-Dapena contributed to this report. To top of page First Published: June 2, 2009: 7:03 AM ET
Hummer has a very good name in China and is selling very well there. So depending on the price, the Chinese could have got a good bargin. On the other hand, there is something to the effect of blind leading blind. Who's is this Sichuan Tengzhong company that ? I'd feel better if it were at least an auto maker that bought it. Looks like GM is just washing hands right now and not caring so much about "saving jobs".
The Chinese don't realize Hummer the brand is dead, a symbol of 00's excess....also they have proven incredibly vulnerable to Vaporizer technology: <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/PLDjo6kIJvY&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/PLDjo6kIJvY&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object> That said the national interest in having Miami Dade CRIME SCENE INVESTIGATORS outfitted with Hummers is very strong, hopefully this is written into the deal.
Otoh, maybe the new owner plans to lean heavily on Hummer’s existing management and workforce. It seems like an odd fit for a Chinese company, but there are big rural areas there that probably don’t have great roads. Is that where they’re selling well, not in the cities but in the rural areas?
I was watching something on Discovery Channel , I think it was called "China Rising". They showed some successful businessman, what did he roll in? Hummer
Citi has a very good M&A group. It shouldn't be confused with the mess that was created by the fixed income trading desks
Not sure why the Chinese would want the Hummer product line. And how are the Chinese controlling this portion of those with GM jobs related to the hummer line a good hting?
That has to be a limited market though, wouldn't you think? Not just because of the cost but because of the impracticality of driving a Hummer around Shanghai or Beijing. Still, a small niche market in China can be pretty big.
How does China buy a US made vehicle line? Do they ship the plants to China? Does it include the military version? That being said I could see viable worldwide market for Hummers for use in energy exploration, logging, heavy construction and as a vanity accessory.
GM hummer and AM General (company that makes military hummers) are two completely separate companies. The Chinese company that is buying Hummer has no experience in the automobile industry. This allows them to break into the market with a company that already has the full engineering and manufacturing capabilities they need to learn. Automobile manufacturing in china will become extremely lucrative in coming years. Its much easier to buy a auto manufacturer then to start one up from scratch, especially if you have no experience.
^ LOL yeah it's politics, and not the fact that Hummer sales dropped off a cliff last year more so than any brand in the world (51% down) and that its plant is sitting idle and hemorrhaging money and GM has been trying to unload it since last summer.
exactly, when I first heard this I was thinking, "didn't they already sell Hummer". they've been trying to move it since last summer
