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Report: GM to Sell Hummer to Chinese Company

Discussion in 'Political Zone' started by JBond, Jun 2, 2009.

  1. JBond

    JBond Well-Known Member

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    Report: GM to Sell Hummer to Chinese Company


    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.

    Click here for more on this story from FOX Car Report.

    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.
  2. Kangaroo

    Kangaroo Active Member

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    This is kind of funny since I just posted about China trying to get in on the American Auto Market and they just bought their way in. Even though the Hummer is losing money it is about getting a foot in the door for them.
  3. JBond

    JBond Well-Known Member

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    Why is Obama doing this? Why is he deliberately sending manufacturing jobs overseas? So China gets a part of GM and Russia get a part and the unions get a part, screwing the legitimate investors all at the same time. Fantastic job by our community agitator.
  4. WoodysGirl

    WoodysGirl Everything is everything... Staff Member

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    If that occurs, it won't happen anytime soon. From the other GM thread


    ABQCOWBOY Moderator Staff Member

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    A year and a half seems soon to me.
  6. Viper

    Viper Active Member

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    How long before the Chinese military is using Hummers? I wonder if they would be interested in making the F22 for us as well.
  7. TheCount

    TheCount Pixel Pusher

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    If they are going to ride around in civilian Hummers, we (and their enemies) have nothing to be afraid of.

    And for the record, GM has been trying to flip Hummer for quite some time. They needed to prune the tree and if the new focus becomes Chevrolet, Cadillac, Buick and GMC, like the article states, sounds good to me. Those are some of the best known American automotive brands in the world.
  8. trickblue

    trickblue Old Testament...

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    They'll have to be equipped with ladders for most applications... ;)
  9. Kangaroo

    Kangaroo Active Member

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    Other than the original H1 the rest of the hummers have been nothing but truck or suv bodies with a hummer shell

    The H2 and H3 are a joke
  10. iceberg

    iceberg nothing is nothing Zone Supporter

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    so maybe the chinese hummers will just add the letter of country ownership.

    Chummers sounds good now.

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