Hummer going to China

[GeneW]

General Motors Corp. has a tentative agreement to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co. of China, the company confirmed today.

GM announced Tuesday that it has a memorandum of understanding to sell the brand of rugged SUVs to the Chinese corporation. Sichuan Tengzhong deals in road construction, plastics, resins and other industrial products, but Hummer would be its first step into the consumer automotive business.

General Motors has not yet confirmed the the price being paid for it's SUV-only division, but said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships.

Critics had seized on the rugged but fuel-inefficient Hummer as a symbol of excess as GM's financial troubles grew and gas prices rose. Sales at Hummer, which is known for hulking sport utility vehicles like the H3, have been in a steep slide since gasoline prices rose to record heights last summer. For the first four months of this year, Hummer sales are down 67 percent.

GM and other automakers will report May auto sales later Tuesday.

A sale of the Hummer brand had been expected. Chief Executive Fritz Henderson had said in April that the automaker was expecting final bids from three potential buyers within the month.

Other terms of the transaction, which is currently tied to a memorandum of understanding, were not disclosed.

Click here for more on this story from FOX Car Report.

Sichuan Tengzhong is planning to "aggressively" finance Hummer's future product programs, according to GM.

http://www.foxnews.com/story/0,2933,...est=latestnews

If the last sentence is true.... well, so much for Hummers not being profitable.

Gene

[GeneW]

The company itself is announcing this deal....

" DETROIT and SICHUAN, June 2, 2009 – Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) and General Motors Corp. (GM), today confirmed details of their proposed transaction, pursuant to which, Tengzhong, a major industrial machinery group, will acquire the rights to the premium off-road HUMMER brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to HUMMER’s dealership network. It is contemplated that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM. In an earlier statement, GM said it expects the deal if successful to secure more than 3,000 US jobs. The final terms of the deal are subject to final negotiations.

Based in the Chinese province of Sichuan, Tengzhong is a privately-owned company and a leading domestic manufacturer of road, construction and energy industry equipment. It will expand into the premium off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for HUMMER’s growth in the U.S. and around the world.

“The HUMMER brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing HUMMER to innovate and grow in exciting new ways under the leadership and continuity of its current management team,” said Yang Yi, CEO of Tengzhong. Mr. Yang continued, “We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S.”

HUMMER will continue to maintain its headquarters and operations in the U.S., and will continue to be managed by its existing leadership team. The team intends to expand HUMMER’s dealer network worldwide, particularly into new and underserved markets such as China.

"Today HUMMER is a globally recognized brand with excellent growth prospects, both in terms of new markets and new products for our existing markets,” said James Taylor, HUMMER chief executive officer. “With Tengzhong’s investment and strong support, we will be able to make our visions a reality. This transaction, if successful, will secure more than 3,000 U.S. jobs, and allow us to embark on a more aggressive global expansion, ensuring a successful future with our new partners.”

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.

Credit Suisse is acting as exclusive financial advisor and Shearman & Sterling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM."

http://www.sctengzhong.com:8080/teng...wn.jsp?id=1159

You may have to hit the link serveral times.... the service isn't that great from Tian Sha.....

You know, there is something almost appropriate about this kind of development. Reminds me, I better bust move learning Pu-tan-hua.

Gene

[tuckevalastin]

I'll always and forever argue that HUMMER could have been a great brand for GM just as Jeep has been for multiple owners. This is the first brand I've ever seen killed literally by reputation only. H1s were built, H1s sold, H2s were built, H2s were sold, H3s were built, H3s were sold. It's clear that the sales of the larger models were slowing but that's why GM was developing smaller ones (HX concept). The brand never sold out on its styling and it never sold out on its offroad roots but still it was the first thing that GM had to dump. And the reason why was the absurd mindset that HUMMER somehow is the root of all evil. I honestly hope that the Chinese keep building HUMMERS as they should be built since, lucky for them, they don't have to care what the ridiculous public think!


p.s.- the Chinese are coming, and they are now doing it in non-knockoff HUMMERS!

[Yar Is Word]

A 300 million man army probably wouldn't mind touring Asia in Hummers.

[SilverBack]

So a civilian "tank" is going to an already over-crowded, polluted, traffic-ridden country. It's just a matter of time before it gets kicked out of there too...

Best to just crush and recycle them all. Toyota could use the metal

[MadMax]

I drove the HMMVW all over Bosnia, and although it is a great tactical vehicle offroad; it is a POS in urban areas. Poor visibility and huge wheelbase make it a bear to drive in any populated area. But in the open offroad, it was great. The thing would climb hills like a goat, and I love the diesel grunt; but trying to go up against Jeep was a bad move and Jeep's response--the four-door JK Unlimited--is just as ridiculous. It is disdained by most Jeep enthusiasts and drive by soccer moms and mall crawlers...

[Darb]

Note that the civilian Hummer brand that is going to China is not the HMMWV that is used by the military. That's still being produced by AM General, but it looks like there is a process underway to replace it in the near future.

[tuckevalastin]

Originally Posted by k r a y z e e . j o j o

So a civilian "tank" is going to an already over-crowded, polluted, traffic-ridden country. It's just a matter of time before it gets kicked out of there too...

Best to just crush and recycle them all. Toyota could use the metal

They've already been copycating them for years so it looks like they quite enjoy them.