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Premium Member
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Discussion Starter #1
ITS OFFICIAL AND OVER - GM SELLS HUMMER TO SICHUAN TENGZHONG!
HUMMER IS NOW CHINESE!


"Hmmm...I wonder how many soup dumplings and Shanghai Hairy Crab I could fit in the bed?"

Well, it is official, GM has finalized the terms and reached an accord to sell an 80% stake of HUMMER to Sichuan Tengzhong Heavy Industrial Machinery and the remaining 20% to a private investor. The deal still requires both US and Chinese regulatory approval, but that is estimated to be reached before the end of the year, or by early 2010.

GM will net $150 Million for the sale of HUMMER, which is at a loss from the $500 Million they hoped to get and bought HUMMER for originally. But, it is better than nothing...like what has just happened to Saturn and earlier to Pontiac.

Sichuan Tengzhong is very optimistic about the future of the HUMMER brand and the development of the more eco-conscious and fuel efficient models in the future, read H4 Concept.

GM will continue to produce the H2, H2 SUT, H3, and H3 SUT for HUMMER through June 2011 with a possible extension available to 2012. Manufacturing will continue at the current HUMMER plants in Shreveport and Mishawaka.

So, the question now, is how will the "uber-patriot" react to the revelation that the All-American HUMMER bleeds Communist Chinese blood?

What are your thoughts?

RG
 

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Mercury C557
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22,734 Posts
I'm not as well versed in GM's situation as Fomoco's
in particularly, don't know if they'll get a significant (to them) $um for selling any of their (former) parts
but
co-incidentally exactly a year ago, I formulated my belief that they REALLY shouldn't have eliminated any Brand-NAMES into a webpage

imho both GM (and Fomoco) haven't quite figured out the benefits(&costs) & requirements of:
the difference between Brands and just multiple Lines of 'products'...
...there's a lot more to it than thinking of them as just Assets or Deficits on the ledger book
imho

then again
could be that I'm wrong in thinking-of and feeling that protective about Mercury as the middle child
 

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Registered
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1,710 Posts
I hope they resurrect the H1. Yikes, this is bad for the USA<ST1:p</ST1:p It should hurt national pride badly., if there is any left.
 

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Premium Member
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615 Posts
Discussion Starter #5
For some reason, I'm not saddened by this. I never thought HUMMER was a smart move for GM in the first place. By that I mean the H2 and H3 lines. The H1 was such a specialty vehicle, it made sense in small numbers.

I never saw myself driving a HUMMER...and still don't.
 

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Premium Member
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615 Posts
Discussion Starter #6
UPDATE!

The Chinese Commerce Ministry has reported this morning that it has not yet received an application from Sichuan Tengzhong to purchase HUMMER from GM.

According to Chinese Business Regulations, the Chinese Commerce Ministry has to approve all foreign mergers and acquisitions. Sichuan Tengzhong's failure to gain this approval could put a huge roadblock in the way of completing the sale of HUMMER to the Chinese.

As quoted in Left Lane News by a Chinese State Radio Source,
“The Ministry of Commerce has yet to receive an application concerning Tengzhong’s purchase of Hummer,” Chinese state radio said, quoting an unnamed Ministry official.
The question is whether Tengzhong has already communicated with the Chinese Commerce Ministry, or whether they are going to continue to dance around the Chinese Government?

The other question is how much this could hurt GM if the HUMMER deal falls through as a result of the Chinese Government blocking the deal for never getting the application in the first place.

The HUMMER saga continues to get more dramatic.
 
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