REPORT: Sichuan Tengzhong to finalize Hummer deal in third quarter, keep U.S. production?
2008 Hummer HX Concept – click above for high-res gallery
According to Automotive News, the deal between General Motors and Sichuan Tengzhong Heavy Industrial Machinery to offload Hummer should be complete by October. A statement made by STHIM's general manager, Yang Yi, further suggests that the Chinese company has no plans to export Hummer's equipment and/or technology to its home market, meaning that the truck brand's offerings should remain North American produced for the foreseeable future.
The details for Sichuan Tengzhong's winning bid for Hummer have not been disclosed, but according to AN, investment bankers are suggesting that the deal was likely brokered for around $100 million in cash, and Yi confirmed that the Chinese heavy machinery company would not be assuming any of GM's debt in the process.
Assuming STHIM and General Motors can sew up the bid for Hummer (in the third quarter or otherwise), the Chinese government will still need to grant approval before the deal can move forward.
Gallery: Detroit 2008: HUMMER HX Concept
[Source: Automotive News]
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Reader Comments (Page 1 of 1)
Avinash machado 10:35AM (6/15/2009)
That dune buggy look works great for Hummer.
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airswingman 1:28PM (6/15/2009)
this deal is more about the financial part, they want hold controlling interest only instead of those Blingbiling
Bubba 5:16PM (6/15/2009)
IBM==>Lenovo
Hummer==>Tengzhong Heavy Industrial Machinery
What's next?
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Mr.Oak 10:51AM (6/15/2009)
Wall Street wouldn't have it any other way. The only good that comes of this deal, is that they will have NO say in how this company is run.
Shawn 11:07AM (6/15/2009)
The Hummer can only exist in a country with government price control for gasoline and basically no environmental regulation. They are going where they can survive and I'm okay with that. We need to be thinking about innovation and what's next. The past should be left in the historic archives and move on with the future instead of worrying about where automoative relics end up.
Redeemed 11:23AM (6/15/2009)
"The Hummer can only exist in a country with government price control for gasoline and basically no environmental regulation."
Totally false.
The Hummer, despite the hatred from environmentalists, does meet regulatory requirements and there is no reason to believe they won't in the future as well. That's what they pay engineers to do.
Enigmatic 12:56PM (6/15/2009)
Well, the Hummer doesn't sell well here regardless, so I give GM a pat on the back for finding a buyer for this floundering brand.
atlasfugged 2:51AM (6/16/2009)
Just FYI, Lenovo does not own IBM. IBM decided to get out of the personal computer business and sold its PC division to Lenovo.
jota 10:54AM (6/15/2009)
Being from a country close to the US, it is known that the business politics from US companies is to buy well known foreign companies to increase their market, value and continue to grow.
Now that the US is in a recession and company owners will close down businesses as soon as loses come their way, expect many foreign companies to start purchasing US assets to apply what the US has applied for many years.
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Smegley 11:29AM (6/15/2009)
Cool. It'll now be socially acceptable with the pseudo-intellectual crowd to own a Hummer now because it will be an international car and you'll be showing your love of all things unamerican.
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Shamdiddly 12:42PM (6/15/2009)
Can I have your child?
sparrk 11:37AM (6/15/2009)
the HX is a cool concept. if they build it with a diesel engine i think it would be a success.
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chicagovet 11:42AM (6/15/2009)
Judging by the looks of that vehicle, Brinks might be interested, too.
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tankd0g 12:17PM (6/15/2009)
Chinese company going against the Chinese government's wishes and getting away with it? What's this world coming to?
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joe23521 12:31PM (6/15/2009)
They haven't gotten away with it yet. Though they do seem pretty confident about the deal.
TriShield 12:19PM (6/15/2009)
The sale of the name to this company is seriously in doubt. It doesn't sound like the Chinese government is too thrilled about an industrial company like this one aquiring a tarnished and environmentally unfriendly American brand or that they want yet another automaker in their country crowded full of them. The brand should simply be wound down like Oldsmobile and Pontiac or the brand rights be given back to AM General.
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Edward Alward 1:46PM (6/15/2009)
My theory is that the Chinese company is buying a brand. Their name :Sichuan Tengzhong Heavy Industrial Machinery is not useful in a global market against Caterpillar or Komatsu.
But stick the HUMMER brand on a backhoe or a dozer and you have instant recognition and implications of thoughness and strenght. Not bad if you want to sell equipment outside of China !!
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Jimbo 9:23PM (6/15/2009)
Makes sense for them to keep building the Hummer in the U.S. That way they can keep selling the H3T and the H2 SUT without being penalized by the Chicken Tax.
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xtasi 9:54PM (6/15/2009)
@Bubba: who do you think was making IBM laptop/pc for all these years? IBM china?
funny that the iPod says "designed in California"... then "Made in China" below it.
@ TriShield: "aquiring a tarnished and environmentally unfriendly American brand". I have a palate of tooth paste, toys, little beads, dog food. Interesting in buying?
The price of lead is at all time low. Stock up and sell it when it picks up again.
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