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REPORT: Tengzhong deal for Hummer expected to close in Q3
Slowly clearing one obstacle after another, Tengzhong is closer to sealing the deal to buy Hummer from General Motors. Chinese reports have come almost completely around, from the nearly certain "No" of a few months ago to "the Chinese government has little to lose giving the green light."
Chinese government officials didn't comment on the story, but the Chinese commerce ministry, one of the two bodies overseeing approval of the purchase, is now saying that it's only natural for Tengzhong to want Hummer. And with Tengzhong issuing pronouncements about mantaining Hummer's dealer network, it looks like the company is confident it will achieve its end. Final price is expected to be less than half of what GM wanted, coming in at around $200 million.
Meanwhile, the vehicles like nothing else keep on trucking, taking part in this weekend's TSCO Vegas to Reno race. Chad Hall and Emily Miller are each piloting H3s -- hopefully through to Sunday's finish. If you're a desert racer, you can keep up with action at Best in the Desert or Sopwith Racing.
[Source: Reuters]
Reader Comments (Page 1 of 1)
why not the LS2LS7? 4:48PM (8/23/2009)
Sounds like the proper bribes have now been paid and the acquisition can go forward.
Congratulations Tengzhong, you're gonna love it.
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AMcA 5:11PM (8/23/2009)
Guess Tengzhong finally got all the right officials paid off.
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Pokey 7:55PM (8/23/2009)
*jazz hands*
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Santosh Tiwari 9:03PM (8/23/2009)
I am still wondering what their business model is?
How are they going to turn profit from it.
All they are getting a brand name and its unmistakable styling. Hummer is not a marvel of engineering.
What are they going to do with Hummer?
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freytheviking 10:04PM (8/23/2009)
lol... worst business decision ever. I guess we should be happy China is buying our garbage.
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the4thheat 10:31PM (8/23/2009)
Oh come on with all those people in China there's certainly enough people who want to buy an H2 to drive on crowded city roads for them to stay in business. Time to hedge on oil pricing because if they really convince everyone in China to buy H2's gas gonna be like $9 a gallon.
Pokey 11:07PM (8/23/2009)
Come on people, this makes perfect sense. China is like an automotive parallel universe, where Buick outsells everything! Everyone in the U.S. stopped buying Hummers, so it stands to reason that they will start selling like hotcakes in China.
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Aznauto 7:55AM (8/24/2009)
Who would thought china would the worlds number 1 auto market couple years ago, i would go out in the limb and predict that GM and Chrysler will relocate the auto capital of the world "Shanghai".
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Alex 10:38PM (8/24/2009)
Interestingly enough, the reason the Chinese government didn't like the deal at first was because they thought Tengzhong didn't have enough experience with the car market. The reason they came around was b/c they're understanding it's a great time to buy now, when the market is down - as discussed in more detail in this article on GM Weekly fan site http://bit.ly/xzfGy
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Don 12:10AM (8/25/2009)
Less than half of what GM wanted. Yikes.
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