Skip to comments.Iconic Hummer brand sold to Chinese manufacturer
Posted on 10/09/2009 6:31:53 PM PDT by BenLurkin
Hummer, the off-road vehicle that once epitomized America's love for hulking trucks, is now in the hands of a Chinese heavy equipment maker.
General Motors Co. and Sichuan Tengzhong Heavy Industrial Machinery Corp. finally signed the much-anticipated deal for GM to sell the brand on Friday.
Tengzhong will get an 80 percent stake in the company, while Hong Kong investor Suolang Duoji, who indirectly owns a big stake in Tengzhong through an investment company, will get 20 percent. The investors will also get Hummer's nationwide dealer network.
Financial terms were not disclosed, although a person briefed on the deal said the sale price was around $150 million. The person did not want to be identified because the terms were being kept private. GM's bankruptcy filing last summer said that the brand with military roots could bring in $500 million or more.
Suolang Duoji also is the controlling shareholder and chairman of Lumena Resources Corp., a Hong Kong listed mining company.
GM and Tengzhong said in a statement that the transaction still must be approved by the U.S. and Chinese governments. Chinese regulators initially expressed reservations about Tengzhong's ability to run such an enterprise.
Hummer's current management team will stay with the new company, which will be headquartered either in Detroit or suburban Auburn Hills, Mich.
James Taylor, the GM executive who has run Hummer recently, will remain as its chief executive officer.
Taylor said in an interview with The Associated Press that he knows resurrecting the brand will be difficult, but the key will be quickly rolling out more fuel-efficient models that get over 20 mpg.
(Excerpt) Read more at finance.yahoo.com ...
(Also applied to the Escalade).
Did I hear somebody say Diesel?
That's a bit much.
This is standard liberal journalist cr*p. They use word iconic in EVERYTHING these days. It is the most overused word lately.
Like in “paradigm shift” “Synergy” “that being said”
The aluminum foil, 40mpg version will be debuted as the “Bummer”. Included is a spare engine to be replaced after 30K miles.
A porcupine has its pricks on the OUTSIDE!
But they weren’t made in China. Cheap steal, cheap engines. I give them a year.
Since GM’s already farmed out a lot of production to China and seen a general quality increase over items produced by lazy UAW workers, the Hummer brand’s quality should at least stay the same if not improve a little bit.
I don’t know if Hummers will still be available a year from now, but I guarantee those Michigan plants will be empty, abandoned shells by then.
he was a small business owner and as such had cause to visit his local bank on a daily basis, or words to that effect...
at any rate, the bank has a spot that they decided to set aside and advertise with a sign...
"This spot for hybrid vehicles"...
anyway, long story, short...
he always aims to park his H2 Hummer in that spot!!
and it was quick...
the sale was for name and profit only...
the production line stays here.
Of course, I could be wrong!!
The engines produced in China for GM as used in the Trailblazer and other light trucks are machined to much better tolerances than the UAW produced motors. Chinese produced cars lag behind now but will catch up quickly.
Good one, that is as believable as the black guy on TV saying Saturn makes cars. LOL
Also applicable to Subarus & Saabs :)
Most commercial hard drives are made in China now, and they’re more than acceptably reliable - which means that they are quite precisely made.
If you can make hard drives in mass quantity with that level of quality, cars aren’t a huge challenge.
Actually, he was right. Now, those engines had other problems - but they did actually have better tolerances than the UAW-made ones.
Don’t take my word for it ... for the last 10 years or so FelPRO gaskets have had a disclaimer on their boxes to the effect that “due to piss poor machining we can’t guarantee that anything will fit a Chevy”