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
But, I thought the Chinese liked to consume dogs.
But, I thought the Chinese liked to consume dogs.
They already make a Hummer knockoff anyway.
I learn something new everyday. Thanks for posting this!
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...
Maybe the One can sell Hummer to his pals in Tehran; it would be good to run over people with.
Probably means during the buyers inspection, the entire configuration management system as well as the contents were ftp’ed to China.
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.
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?
Not to worry. A real American, Roger Penske, will buy it.
Looks like the Chinese answer to “punk.” Dig the huge blingy cross that the one on the right is wearing.
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.
They ought to hire the Lewinsky and Clintoon team.
When it comes to hummers, those two have a proven track record.
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.
Check out the keywords.....LOL
Thank you very much. I’ll be here all week....
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.
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