GM deals Hummer to Chinese buyer

Hummer, meet your new master...

Who bought Hummer? Sichuan Tengzhong of China - Jun. 2, 2009

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.

 

So, how much would you pay for a Chinese Hummer???

:drum:

 

Arghh... it was meant as a joke. Chinese hummer... Get it?

Ne'er mind...

 

While American auto honchos and economic policymakers stayed mired for years in the old business model of ever-bigger, expensive, fuel-gulping, unreliable vehicles, China's industrial and political leaders have been planning for and investing in smaller, well-built, fuel-sipping cars.Part of its plan was to lure such foreign makers as GM into joint ventures.

The foreigners, seeking the short-term gain of China's cheap labor, willingly delivered their technology and managerial know-how to the Chinese, who used both to modernize their own industry and leapfrog into mass production for both domestic and export markets. Indeed, with the Hummer purchase, China gets all the technology, a Western dealership network and a developed brand.

Meanwhile, China's real push is into cleaner-energy vehicles. While Barack Obama made a big show in May of announcing that U.S. car companies will be required to make vehicles that average 35.5 miles per gallon by 2016, the average vehicle in China already surpasses that. And, to up the ante, only one week after the president's big announcement, China said that its vehicles will average 42 miles per gallon by 2015.

In addition, China has gotten the jump on reaching the next level of fuel economy. Its BYD company (which includes American finance guru Warren Buffet as an investor) is now producing a mass-market plug-in electric car -- an advance that is well ahead of the Chevrolet Volt plug-in that GM has been developing and hopes to bring to market late next year.

Assuming, of course, that China does not buy Chevrolet before then.

The Hummer: America's Favorite Wasteful Toy Has Moved to the Land of Mao | World | AlterNet

 

"All I need is cash," Hummer CEO Jim Taylor told China Daily in a recent telephone interview, refusing to say how much the Chinese company is willing to pay for the Hummer brand. With negotiations under way, much has not been set in stone as yet, he said.

Still, Taylor expects the Hummer deal between GM and Tengzhong to be finalized by the end of the third quarter.

'Cash first' for GM Tengzhong deal


Tengzhong Heavy Industrial Machinery, the "black horse" that emerged earlier this month as a bidder to acquire the Hummer brand from bankrupt GM is being charged for defaulting on construction cost of RMB 470,000, a local news paper reported this week.


Sichuan Antz Mechanical & Electrical Corporation, an affiliated company of Chengdu Ant Group, signed service contract with Tengzhong for 280,000 in June 22, 2008 and 150,000 in August 28, 2008. Tengzhong defaulted on the installment payment which should have began after the completion of the project in June 30, 2008.

Maeil Business Newspaper reported that Tengzhong wrote to Antz regarding the installment. The paper learned that Tengzhong failed to pay the RMB 510400 which was due to the financial crisis. Tengzhong promised to pay it back after another project began.

However, Tengzhong still didn’t fulfill that promise. The two sides signed another agreement on payment in March 30, and Antz asked Tengzhong to pay installment of RMB 470,000. Tengzhong broke the promise once again.

Hummer suitor has no money in the bank - International Business Times -

 

The incomparable 2009 Hummer H2 commands the road with new technologies -- including Bluetooth connectivity for hands-free phone operation -- new interior amenities, a Black Chrome limited edition model and standard E85 FlexFuel capability. The enhancements give customers more choices on a model line that delivers an uncompromising balance of capability and comfort.

2009 Hummer H2 adds exfuel capability - Washington Times