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China Kills Buyout Of Hummer
http://247wallst.com/ ^ | Posted: June 26, 2009 at 4:56 am | Douglas A. McIntyre

Posted on 06/27/2009 3:00:30 PM PDT by ThreePuttinDude

GM wants to sell Hummer. It needs the money. Sichuan Tengzhong, a heavy equipment firm based in China, looked like a ready buyer. GM would like to find an acquirer that would save most of the unit’s jobs. Sichuan Tengzhong seemed to fit that bill.

Now it appears that the Chinese government has killed any chance of a transaction. According to the AP, it is because the equipment company “lacks expertise to run Hummer.” The news is a strong indication that China wants to push its companies to expand abroad, particularly if they can buy depressed assets at fire sale prices, but it does not want to risk failures. Sinopec (SNP), a big mainland oil company, just agreed to pay $7.2 billion for Addax Petroleum to get access to African crude reserves. Chinalco, a major Chinese metals firm, thought it had a deal to buy an 18% stake in mining company Rio Tinto (RTP) for almost $20 billion. Rumors are that pressure from the Australian government helped scuttle the transaction. China faced public humiliation as a smaller country killed an important deal.

China has also loaned Brazilian oil company Petrobras $10 billion to help it develop deep sea oil reserves in the southern Atlantic. The world’s most populous nation has been aggressive in trying to lock up future supplies of crude.

The Hummer deal may have been killed because the Chinese did not want to see one of their companies to get involved in businesses that are not strategic the the national interests and may have a high risk of faltering financially. Hummer is already in trouble because high gas prices are decimating its sales. There is no reason to believe that a Chinese firm, or any other firm for that matter, can fix Hummer’s problems.

China may have meddled in Sichuan Tengzhong’s plans because a misstep would have been bad PR.

Douglas A. McIntyre


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: automakers; china; generalmotors; hummer; lewinski; tengzhong

1 posted on 06/27/2009 3:00:31 PM PDT by ThreePuttinDude
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To: ThreePuttinDude

But, I thought the Chinese liked to consume dogs.


2 posted on 06/27/2009 3:05:23 PM PDT by trumandogz (The Democrats are driving us to Socialism at 100 MPH -The GOP is driving us to Socialism at 97.5 MPH)
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To: ThreePuttinDude

But, I thought the Chinese liked to consume dogs.


3 posted on 06/27/2009 3:05:56 PM PDT by trumandogz (The Democrats are driving us to Socialism at 100 MPH -The GOP is driving us to Socialism at 97.5 MPH)
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To: ThreePuttinDude

They already make a Hummer knockoff anyway.


4 posted on 06/27/2009 3:09:13 PM PDT by cripplecreek (The poor bastards have us surrounded.)
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To: ThreePuttinDude
I figured the Chinese would buy Hummer and eventually stripped the factories clean and ship all that was in them to China, like they have done in the past.
5 posted on 06/27/2009 3:09:45 PM PDT by BBell
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To: BBell
The Dongfeng Hummer knockoff.

Image and video hosting by TinyPic
6 posted on 06/27/2009 3:14:56 PM PDT by cripplecreek (The poor bastards have us surrounded.)
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To: cripplecreek

I learn something new everyday. Thanks for posting this!


7 posted on 06/27/2009 3:22:31 PM PDT by FlingWingFlyer (Hey America! How's that "hope and change" thing working out? Are you scared yet?)
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To: ThreePuttinDude
"... the equipment company “lacks expertise to run Hummer"..."

How about if we throw 0 in on the deal. He thinks he knows how to run a car company. Maybe if they don't tell each other...

8 posted on 06/27/2009 3:23:32 PM PDT by skimbell
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To: cripplecreek

Maybe the One can sell Hummer to his pals in Tehran; it would be good to run over people with.


9 posted on 06/27/2009 3:30:05 PM PDT by AmericanVictory (Should we be more like them or they more like we used to be?)
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To: ThreePuttinDude

Probably means during the buyers inspection, the entire configuration management system as well as the contents were ftp’ed to China.


10 posted on 06/27/2009 3:34:15 PM PDT by fso301
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To: ThreePuttinDude

They figgered out that if they built them there, they could not export them back to here due to Crap-and-Charade laws. Too bad, no Hummer....Bummer.


11 posted on 06/27/2009 3:38:10 PM PDT by SERKIT ("Blazing Saddles" explains it all.....)
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To: SERKIT

Honda and Toyota have no trouble building and selling here. Why should China get cold feet over the same kind of arrangement that is lucrative for Japan?


12 posted on 06/27/2009 4:08:07 PM PDT by HiTech RedNeck (In only 19 weeks, 0 has enabled us to agree with the Taliban [his empty speechifying] - Iron Munro)
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To: ThreePuttinDude

Not to worry. A real American, Roger Penske, will buy it.


13 posted on 06/27/2009 4:08:49 PM PDT by Captain Jack Aubrey (There's not a moment to lose.)
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To: cripplecreek

Looks like the Chinese answer to “punk.” Dig the huge blingy cross that the one on the right is wearing.


14 posted on 06/27/2009 4:10:13 PM PDT by HiTech RedNeck (In only 19 weeks, 0 has enabled us to agree with the Taliban [his empty speechifying] - Iron Munro)
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To: Captain Jack Aubrey

When I heard what he did with Saturn, I had a good feeling
more of this would happen.

I guess I just have to much “pie in the sky” kinda thing goin’ on.


15 posted on 06/27/2009 4:15:30 PM PDT by ThreePuttinDude (o)...Ayatollah of GlennBeckistan... keep it goin' brother...(o)
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To: ThreePuttinDude

They ought to hire the Lewinsky and Clintoon team.

When it comes to hummers, those two have a proven track record.


16 posted on 06/27/2009 4:21:53 PM PDT by Nervous Tick (Stop dissing drunken sailors! At least they spend their OWN money.)
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To: ThreePuttinDude
Our government does not have anyone to run an automotive company either.
17 posted on 06/27/2009 4:22:57 PM PDT by mountainlion (concerned conservative.)
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To: ThreePuttinDude

Probably the real reason is they see that businesses simply won’t prosper under the Bozo WH. Until we get those communists out of office our economy will tank.


18 posted on 06/27/2009 4:25:46 PM PDT by calex59
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To: Nervous Tick

Check out the keywords.....LOL

Thank you very much. I’ll be here all week....


19 posted on 06/27/2009 4:30:47 PM PDT by ThreePuttinDude (o)...Ayatollah of GlennBeckistan... keep it goin' brother...(o)
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To: calex59; mountainlion
These idiots we have running DC only know how to run their mouths.
How many of them have real world experience? Other than being lawyers?

I've often wondered how alGore can go around talking as if he know all about
climatology? Has he ever successfully learned anything or gained a degree?
I don't know how these “know-it-alls” can sleep at night with all of the
bloviating they do. No conscience allows them to go one I guess.

20 posted on 06/27/2009 4:36:13 PM PDT by ThreePuttinDude (o)...Ayatollah of GlennBeckistan... keep it goin' brother...(o)
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To: ThreePuttinDude
China may have meddled in Sichuan Tengzhong’s plans because a misstep would have been bad PR.

And the Chicoms are different from Obama how again?...

21 posted on 06/27/2009 4:38:05 PM PDT by tophat9000 ( We are "O" so f---ed)
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To: ThreePuttinDude

Why should the Chinese buy anything American. Here’s a great example of another Chinese ripoff. Nothing is sacred.

http://www.dailymail.co.uk/news/worldnews/article-1172635/A-30-000-copycat-Rolls-Royce-It-China.html


22 posted on 06/27/2009 4:40:11 PM PDT by germanicus
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To: cripplecreek

Hmmm I like the looks of the Dongfeng Hummer knockoff better then the GM H3


23 posted on 06/27/2009 4:40:50 PM PDT by tophat9000 ( We are "O" so f---ed)
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To: HiTech RedNeck

... strings attached ... not legal in the US under Cap & Trade ...

I guess the Chinese know better than to make deals with a company run by a government. Been there, done that, know it inside and out.


24 posted on 06/27/2009 4:55:10 PM PDT by Tellurian (Sanctity of life and sanctity of property ... define our free country. (Star Parker))
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To: ThreePuttinDude

So they Blew Off getting a Hummer?


25 posted on 06/27/2009 5:02:48 PM PDT by Vendome
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To: tophat9000
More pix of the 'feng
26 posted on 06/27/2009 5:11:49 PM PDT by HiTech RedNeck (In only 19 weeks, 0 has enabled us to agree with the Taliban [his empty speechifying] - Iron Munro)
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To: Vendome
So they Blew Off getting a Hummer?

Stopped after a reflex gag order.

27 posted on 06/27/2009 5:12:14 PM PDT by IrishPennant (RLT = Radical Left Terrorism...feel it????)
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To: Vendome

LOL, good one 8^)


28 posted on 06/27/2009 5:12:44 PM PDT by ThreePuttinDude (o)...Ayatollah of GlennBeckistan... keep it goin' brother...(o)
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To: ThreePuttinDude

China did it to save face.

Or, in John Kerry terms, horseface.


29 posted on 06/27/2009 5:24:07 PM PDT by exit82 (Be vigilant--what is happening on Iran's streets may yet happen here in America.)
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To: exit82

Price too hi, price too hi!


30 posted on 06/27/2009 5:37:33 PM PDT by Wally_Kalbacken
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To: exit82

Well, they were going to call this the Bold Horse.


31 posted on 06/27/2009 5:44:32 PM PDT by HiTech RedNeck (In only 19 weeks, 0 has enabled us to agree with the Taliban [his empty speechifying] - Iron Munro)
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To: ThreePuttinDude
The Chinese are the new grown ups of the planet. And there's no doubt who are the children. Barack. Rahm. Nancy. And the rest of our Federal Romper Room. They just have no idea what they are facing. This is a 2,000+ year old civilization that is patient, clever and plays a wicked hand of poker. They must be absolutely laughing their asses off at our obsession with climate change, which they know is a fraud. They broke off carbon talks with us just last week. China has no intention of slowing down their two-dozen per year pace of coal-fired power plants. They won't waste a yuan on the insanity of carbon sequestration. They are drooling at the prospect of companies moving to China in droves if this bill becomes law. They cannot believe that the great United States is committing economic suicide.

If Obama is elected for a 2nd term, by the time he is done, China will be the bastion of free market capitalism. And we will just be a basket case.

32 posted on 06/27/2009 6:21:35 PM PDT by FreepShop1
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To: ThreePuttinDude

Was owl gore even a lawyer?


33 posted on 06/27/2009 6:26:22 PM PDT by mountainlion (concerned conservative.)
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To: HiTech RedNeck

Uhm, because it’s for a brand of rather inefficient large vehicles that probably won’t sell very many units these days. I don’t them actually.


34 posted on 06/27/2009 6:45:49 PM PDT by ItisaReligionofPeace
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To: FreepShop1
They cannot believe that the great United States is committing economic suicide.

I wonder how much of the whispering campaign behind US global warmism is being urged on by China. China couldn't care less about losing a few feet of coast.

35 posted on 06/27/2009 7:01:41 PM PDT by HiTech RedNeck (In only 19 weeks, 0 has enabled us to agree with the Taliban [his empty speechifying] - Iron Munro)
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To: IrishPennant

Bad Poster. slap your hand


36 posted on 06/27/2009 7:11:06 PM PDT by Vendome
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To: Vendome
I'm sorry :) but it is Saturday night...
37 posted on 06/27/2009 7:25:05 PM PDT by IrishPennant (RLT = Radical Left Terrorism...feel it????)
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To: ThreePuttinDude

;-)


38 posted on 06/27/2009 7:33:10 PM PDT by Nervous Tick (Stop dissing drunken sailors! At least they spend their OWN money.)
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To: IrishPennant

gotta find something else to entertain me and my friends before I fall asleep


39 posted on 06/27/2009 7:34:50 PM PDT by Vendome
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To: Vendome

ahhh..how about adult beverages for your and your friends????


40 posted on 06/27/2009 7:48:48 PM PDT by IrishPennant (RLT = Radical Left Terrorism...feel it????)
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To: IrishPennant

Balvenie 12 year, Kelt(anything) or Pierre Ferrand Cognac. Uhmmmm, delicious


41 posted on 06/27/2009 9:40:19 PM PDT by Vendome
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