Quote:

Report: GM to Sell Hummer to Chinese Company
Tuesday, June 02, 2009


NEW YORK — General Motors Corp. has a tentative agreement to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co. of China, Jeff Flock of FOX Business Network has confirmed.

GM announced Tuesday that it has a memorandum of understanding to sell the brand of rugged SUVs, but the company didn't disclose the buyer.

A formal announcement of the buyer's identity was to be made Tuesday afternoon.

Sichuan Tengzhong deals in road construction, plastics, resins and other industrial products, but the person briefed on the deal says Hummer would be its first step into the automotive business. The person spoke on condition of anonymity because the details have not been made public.

General Motors has not yet confirmed the identity of the buyer or 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.

"We're not today in a position to be able to identify a buyer. it was part of the agreement," GM Chief Executive Fritz Henderson told CBS's "The Early Show." "We believe the buyer is quite capable of closing."

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.

The unnamed buyer is planning to "aggressively" finance Hummer's future product programs, according to GM.

"I'm confident that Hummer will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused and more cost-competitive automaker," Troy Clarke, president of GM North America, said in a statement.

GM is also trying to sell its Saab and Saturn brands and will phase out its Pontiac brand as it concentrates on its Chevrolet, Cadillac, Buick and GMC nameplates.

In advance of Monday's bankruptcy filing by GM, the automaker had agreed on a deal to sell a majority interest in its Adam Opel GmbH unit in Europe.

Under that plan, Canada's Magna International Inc. would get a 20 percent stake in Opel and state-controlled Russian lender Sberbank would take a 35 percent stake. GM will retain a 35 percent holding, while the remaining 10 percent will go to Opel employees.

The proposed deal for Hummer will allow it to continue to contract vehicle manufacturing and business services from GM during the transition process.

The Hummer sale is expected to close by the third quarter's end.

GM sought court protection from its creditors on Monday under Chapter 11 of the U.S. bankruptcy code. The company said it hopes to reshape the company within a month and emerge from reorganization in 60 to 90 days as a profitable entity with fewer employees, factories and dealers.

The Associated Press contributed to this story.

Will the U.S. Military still buy The Hummer??? Pay the Chinese? Equip the Chinese Military?








Edited 1 time(s). Last edited Tuesday, June 02, 2009 1:03 PM


"The FACTS are always subject to CHANGE once the TRUTH is applied"
"In the entire history of man the only stupid questions are the ones that don't get asked"

The fact is the Chinese could have bought Hummers for their military before. International Corporations like GM don't give a rats ass about America and will sell their product to anyone who has the cash. Now the Chinese own the rights. Our military will either buy rights to produce them elsewhere from the Chinese or find an alternative.

I for one think its about time we get something better than the Humvee for our troops.


___________________________________________________________________

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I knew the Chinese had built a "Copy" of the Humvee a few years ago but it turned out to be a POS.I haven't heard yet if this sell includes the AM General part or if it's just the Hummer brand that now makes the H3...





"The FACTS are always subject to CHANGE once the TRUTH is applied"
"In the entire history of man the only stupid questions are the ones that don't get asked"

The H1 has not been produced for a few years. As far as I know AM General is not part of the deal.

They can buy " hummer" but AM General will still be state side, as the contractor for the H.M.M.V.


At least that's what I've heard from GM over GlobalConnect.


Chris




"An appeal to arms and the God of hosts is all that is left us. But we shall not fight our battle alone. There is a just God that presides over the destinies of nations. The battle sir, is not of the strong alone. Is life so dear or peace so sweet as to be purchased at the price of chains and slavery? Forbid it almighty God. I know not what course others may take, but as for me, give me liberty, or give me death."

Speech at the Second Virginia Convention at St. John's Church in Richmond, Virginia (23 March 1775) Patrick Henry

Taetsch Z-24 wrote:They can buy " hummer" but AM General will still be state side, as the contractor for the H.M.M.V.


At least that's what I've heard from GM over GlobalConnect.


Chris

Actually.... its H.M.M.W.V.

The older military Humvee's and GM's H2 and H3 have about as much in commom as a potoatoe and a Television..... they are not even remotely the same vehicle. All a H2 is... is a Suburban with a goofy looking body. Just for those that dont know.

If AM general stil has a military contract..... this might have been miss read.... if not.... Im sure the military has something new in mind.... although selling any country our old military technology is stupid IMO.

And am I the only one that though of porn after reading the topic of this thread? LOL

H3 is a glorified Colorado with a SUV body on it.

^^^^ After working on the "real ones" in the military for so long.... all this H2 and H3 crap cant help but to irritate me...... "Its not really a hummer damnit" LOL

Do people that drive those really think they have anything special?

Basck on the military note..


Hell we sell used C-5 Stratofortresses to russia let alone plans for Humvees.... why the hell do we do that? That seems like a national defense breach of some kind to me but we still do it.

GM @!#$ up on Hummer. They went the luxury route instead of building what could have possibly been the best and most popular work truck ever.



FORGET GIRLS GONE WILD WE HAVE GOVERNMENT SPENDING GONE WILD!

General Motors and AM/General are two seperate companies. The Hummer H1 was sold under license. AM/General is a military contractor and has never been part of General Motors or Hummer at any time. GM sold engines and trannies to AM/General and AM/General sold them some H.M.M.W.V.'s that were prepped for civilian use.

AM/General btw doesn't get it's name from General Motors but from a combination of the old American Motors and the General Products Division of Studebaker.

As for Hummer being Chinese, all that GM sold was a name and some design rights. That's about it. If it's as good as the other Chinese cars we'll never see one.

good riddance



1989 Turbo Trans Am #82, 2007 Cobalt SS G85

What GM said...

Tengzhong In Advanced Talks To Purchase HUMMER From GM In Strategic Acquisition
Industrial Machinery Company To Invest in Growth and Global Expansion of Premium Off-Road Vehicle Brand; Deal is Expected to Secure Over 3,000 US Jobs

Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) and General Motors Corp. 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 & Stearling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.

About GM

General Motors Corp., one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

About Tengzhong

Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. ("Tengzhong") is one of China's major privately owned engineering companies. Tengzhong is a manufacturer of heavy machinery equipment with a presence in special-use vehicles, road and bridge construction equipment and construction and energy industry equipment.

Since its establishment, Tengzhong has quickly become a major manufacturer of machinery and construction components through a series of successful acquisitions. Tengzhong prides itself on its automated manufacturing equipment, its processing systems, significant research and development initiatives and commitment to innovation.



THE POLITICALLY INCORRECT ONE.

So we are talking about these BS fake H2's and H3's then...... not the military ones....... thats what I gather from that.

I was thinking the same thing.... "GM doesnt make Hummvees? wtf"

One thing I never understood.... Why did Dodge dealers always have the civilian prepped (original) Hummers for sale instead of GM when GM was the sole source for the engines and transmissions for AM general?

6.2 liters of turbo diesel fury LOL

I think all of this is a bad idea.... who has the money to buy one right now anyway....

Personally... I wouldnt be cought dead in one of those things.... only ignorant status oriented people buy them.

^^Yep.


THE POLITICALLY INCORRECT ONE.

Weebel wrote:only ignorant status oriented people buy them.

that could be said about ANY car that isn't a cheap grocery getter

^^^^ So any mid-sized car is bought by an ignorant status oriented person???

I think there is a line somewhere between the Hummer and a grocery getter.

Darkstars wrote:

Weebel wrote:only ignorant status oriented people buy them.

that could be said about ANY car that isn't a cheap grocery getter

And thats one of the reasons I drive a cheap grocery getter that I just happen to be hopping up...

I will never buy a car based on my assumption of other peoples opinions about me if I buy it or care if I look cool or not in it.

theres something to be said about expensive cars. allot of them are very very nice to drive. allot more comfortable. more room.. more power. more modern conveniences, just because something is more expensive doesnt mean its just about portraying an image.


http://www.flickr.com/photos/sndsgood/ https://www.facebook.com/#!/Square1Photography

^^^^ True..... and If I had the money to buy a BMW M5 for a daily driver I would because I love the way my ass feels in those seats and how nice those cars are...... I could give a crap less about it being a BMW though.

But I bet most people still by them for status reasons...... they call them Beamers for a reason.

Im not saying people have other reasons for buying cars.... but weather they know it or not..... most people buy fancy or expensive cars based on vain reasoning.... its just human nature..

with the Chinese now making hummer, maybe they'll stand up better to crashing.



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just so people know, the humvee is not used near as much in military applications anymore. they've moved on to better platforms.