Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Shreveport, LA mayor lobbies D.C. to close the HUMMER deal, already]]>http://www.autoblog.com/2009/10/24/shreveport-la-mayor-lobbies-d-c-to-close-the-hummer-deal-alre/http://www.autoblog.com/2009/10/24/shreveport-la-mayor-lobbies-d-c-to-close-the-hummer-deal-alre/http://www.autoblog.com/2009/10/24/shreveport-la-mayor-lobbies-d-c-to-close-the-hummer-deal-alre/#commentsFiled under: , , , , , , ,



Cedric Glover, the mayor of Shreveport, Louisiana, went to Washington, D.C. to plead his case for the sale of Hummer to Tengzhong. The only thing is, we're not sure why he went. To be more precise, we do know that he wants to protect jobs at GM's Shreveport plant that builds Hummers. The plant has about 800 workers who build some of The General's pickup trucks and Hummer models, and the loss of The Big H would undoubtedly put people out of work.

What we're not sure of is what he thinks Washington has to do with it. He did ask that a couple of D.C. muckety-mucks "consider reaching out to the Chinese government to urge immediate approval of the Hummer deal," but Washington hasn't expressed any opposition to the deal and probably couldn't get the deal concluded on the Chinese side any sooner -- never mind the fact that Hummer is the least of Washington's concerns as far as China goes.

We've been told by one source at Hummer that although nothing is final until it's signed, they feel good about the deal, and Tengzhong must have known what it was doing when it made the bid in the first place. Yet beyond all that, as it stands today the Shreveport plant has three years to live at most: the facility wasn't part of the Hummer sale, and GM said it would shutter the place by 2012 at the latest. Mayor Glover wants to save jobs in his town, which is great, but unless GM starts going gangbusters (and soon) then Glover could be playing the Deck Chair and Sinking Ship game.

[Source: HummerGuy]

Shreveport, LA mayor lobbies D.C. to close the HUMMER deal, already originally appeared on Autoblog on Sat, 24 Oct 2009 14:16:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cedric gloverCedricGloverchinageneral motorsGeneralMotorsgmgovernmenthummerLAmanufacturingplantsshreveportshreveport assemblyShreveportAssemblysuvtengzhongtengzhong hummerTengzhongHummertruckuawunionSat, 24 Oct 2009 14:16:00 EST<![CDATA[Recork the Champagne? China says Hummer paperwork not submitted yet]]>http://www.autoblog.com/2009/10/12/recork-the-champagne-china-says-hummer-paperwork-not-submitted/http://www.autoblog.com/2009/10/12/recork-the-champagne-china-says-hummer-paperwork-not-submitted/http://www.autoblog.com/2009/10/12/recork-the-champagne-china-says-hummer-paperwork-not-submitted/#commentsFiled under: , , , ,


2008 Hummer HX concept - Click above for high-res gallery

Last week, it was reported that General Motors had signed a definitive agreement to sell Hummer to Chinese machinery manufacturer Tengzhong. The Chinese company and its partner in the deal, Lumena Resources Corp., would pay $150 million and receive Hummer and its intellectual property, ownership of U.S. franchise agreements, and manufacturing, business, and component assistance during a four- or five-year transition period.

The questions being raised now concern what is happening on the other side of the Pacific. The Chinese Commerce Ministry reportedly hasn't received Tengzhong's application to officially bring Hummer home, which has led observers to wonder if there will be a holdup or reversal of the deal. According to a Hummer representative, however, Tengzhong had to finalize the deal with GM before it could present it for approval to the Chinese authorities:

The closing of the transaction is subject to customary closing conditions and regulatory approvals and/or review by agencies in China and the U.S. Tengzhong has started communicating with the relevant regulatory bodies and will continue to support the application process in accordance with the requirements. Formal engagement was only able to begin with the signing of the definitive agreement.
If all goes well, Tengzhong hopes to have the deal closed by early 2010.


Gallery: Detroit 2008: HUMMER HX in the design studio


[Source: Automotive News, sub. req'd.]

Recork the Champagne? China says Hummer paperwork not submitted yet originally appeared on Autoblog on Mon, 12 Oct 2009 16:29:00 EST. Please see our terms for use of feeds.

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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]

REPORT: Tengzhong deal for Hummer expected to close in Q3 originally appeared on Autoblog on Sun, 23 Aug 2009 16:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acquisitionschinahummertengzhongtengzhong hummerTengzhongHummerSun, 23 Aug 2009 16:15:00 EST<![CDATA[HUMMER hanging on: Tengzhong in talks with Chinese government to clear sale]]>http://www.autoblog.com/2009/07/05/hummer-hanging-on-tengzhong-in-talks-with-chinese-government-to/http://www.autoblog.com/2009/07/05/hummer-hanging-on-tengzhong-in-talks-with-chinese-government-to/http://www.autoblog.com/2009/07/05/hummer-hanging-on-tengzhong-in-talks-with-chinese-government-to/#commentsFiled under: , ,



Chinese National Radio recently reported that Tengzhong wouldn't be allowed to purchase Hummer due to environmental concerns. The company released a statement after that news broke saying that while there was no "definitive agreement," the CNR report wasn't based on facts from the government regulatory body in question, and Tengzhong is still working on the deal.

Last week, in a report titled "Tengzhong may get green light from the regulators for its acquisition of Hummer," CNR's take on where things appears to back up Tengzhong's view that the game is not yet played. The company's discussions with the National Development and Reform Commission (NDRC) and the Ministry of Commerce -- it needs approval from both parties -- have begun, and three options for concluding a deal were proposed.

If Tengzhong can convince the authorities of its expertise and business blan, and gets approval from both parties, it wants to set Hummer up in Sichuan province. If there is resistance to setting Hummer up directly, Tengzhong could try to base the company in one of China's ten bonded areas -- harbor points where the vehicles aren't officially "in" the country until taxes and fees are paid -- but this could impact the company's ability to sell Hummers in China. Or, the company could simply become a foreign investor in Hummer.

It isn't clear whether those options are Tengzhong's take on the purchase, or if that was just more speculation from CNR. Hummer had no comment on the matter.

[Source: Hummer]

HUMMER hanging on: Tengzhong in talks with Chinese government to clear sale originally appeared on Autoblog on Sun, 05 Jul 2009 18:08:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>acquisitionchinahummerhummer saleHummerSalenational development and reform commissionNationalDevelopmentAndReformCommissionndrcsuvtengzhongtengzhong hummerTengzhongHummerSun, 05 Jul 2009 18:08:00 EST<![CDATA[Hummer buyer to start talks with Chinese gov't to win sale?]]>http://www.autoblog.com/2009/06/29/report-hummer-buyer-to-start-talks-with-chinese-govt-to-win-sa/http://www.autoblog.com/2009/06/29/report-hummer-buyer-to-start-talks-with-chinese-govt-to-win-sa/http://www.autoblog.com/2009/06/29/report-hummer-buyer-to-start-talks-with-chinese-govt-to-win-sa/#commentsFiled under: , , , , ,



China's Sichuan Tengzhong Heavy Industrial Machinery, the company that recently surfaced as the top bidder for Hummer, is about to start talks with Chinese regulators to secure the deal. While General Motors has a tentative agreement with Tengzhong, the two companies have yet to receive the state's blessing, which is necessary for the sale to go through.

Tengzhong, GM and Hummer have been working on a proposal to present to the National Development and Reform Commission, despite speculation that the deal will be blocked by those Chinese officials. Tengzhong reportedly remains optimistic, saying they haven't heard anything from the authorities and don't expect to until their proposal is actually submitted.

Speculation that the deal was in jeopardy began when a China National Radio station reported that government regulators would block the deal based on environmental concerns about Hummer vehicles and the fact that Tengzhong doesn't have much experience as an automaker. Tengzhong is better known as a manufacturer of special-use vehicles, structural components for highways and bridges, construction machinery and energy equipment, so some have suggested this is little more than a publicity stunt for the company, but it certainly sounds like they are serious about the deal now.

[Sources: Reuters, Wall Street Journal]

Hummer buyer to start talks with Chinese gov't to win sale? originally appeared on Autoblog on Mon, 29 Jun 2009 10:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>hummerhummer salehummer sale chinaHummerSaleHummerSaleChinareportSichuan Tengzhong Heavy Industrial MachinerySichuanTengzhongHeavyIndustrialMachinerytengzhongtengzhong hummerTengzhongHummerMon, 29 Jun 2009 10:58:00 EST<![CDATA[REPORT: China to block HUMMER sale to Tengzhong]]>http://www.autoblog.com/2009/06/26/report-china-to-block-hummer-sale-to-tengzhong/http://www.autoblog.com/2009/06/26/report-china-to-block-hummer-sale-to-tengzhong/http://www.autoblog.com/2009/06/26/report-china-to-block-hummer-sale-to-tengzhong/#commentsFiled under: , , , ,


2008 Hummer H2 - Click above for high-res gallery

General Motors' pending deal to offload its unwanted HUMMER brand may have hit a major snag. Although no official word has come from the Ministry of Commerce or the National Development and Reform Commission, state-run radio organizations are reporting that the Chinese government will indeed block the sale of HUMMER from GM to Sichuan Tengzhong Heavy Industrial Machinery Co. It's impossible to know exactly how this whole mess will play out, but these reports clearly jive with the general sentiments we've been hearing since the deal was first announced.

According to Chinese radio reports (via the BBC), there are two main objections to the HUMMER deal. First, the brand's environmental credentials don't match up with the direction the Chinese government wants its automakers to head. Second, there are questions as to whether Tengzhong has the expertise to properly manage a large automaker as it's business dealings so far have all been in the construction equipment segment.

Not so fast, says Tengzhong. In a newly-released statement regarding these latest reports, the company had this to say:
Some people may have views and speculation, but the Chinese government has a process that we respect... The view expressed on China National Radio's website did not quote or source anyone at NDRC. We do not yet have a definitive agreement, but are developing our proposals with GM and Hummer and we will continue to engage with the appropriate authorities in an appropriate manner.
At this point, it seems equally as possible that a decision could either come down in short order or come only after a long series of protracted negotiations. Stay tuned. Thanks for the tip, Dave S!


Gallery: 2008 HUMMER H2


[Source: BBC]

REPORT: China to block HUMMER sale to Tengzhong originally appeared on Autoblog on Fri, 26 Jun 2009 14:57:00 EST. Please see our terms for use of feeds.

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General Motors' potential sale of Hummer to Tengzhong is probably good news for those interested in seeing the company return to independent and profitable status as quickly as possible. The move should see enable GM to shed the negative political and social association of the star-crossed SUV brand and get some money in return. There is actually a better option, says The New York Times' Ethicist.

The Ethicist frames the issue as figuring out which is more important: GM's employees and shareholders (i.e., the American public) or the environment. Hummer vehicles are too heavy and use too much gas and, the Ethicist says, hazardous products should be regulated by the government. Now that the government basically owns Hummer, there is "an opportunity to reconsider transportation policy, including from a moral perspective. Such an analysis urges not merely discontinuing the Hummer but also significantly reducing our reliance on the private car." Here's more:
Shutting down Hummer could even turn out to be cost-effective. The sale price, perhaps as much as $500 million, may well be dwarfed by the long-term costs - in environmental damage, in public health - to us taxpayers, G.M.'s majority owners, of keeping those three tons of steel on the road. [...] The restructuring of G.M. gives us a chance to avert the fate of being laid low by our own automobiles, the grand manifestation of America's industrial might. The first thing we do, let's kill all the Hummers.
So, what's the right thing to do here?

View Poll


[Source: The Ethicist]

Is selling Hummer the morally correct thing to do? [w/POLL] originally appeared on Autoblog on Tue, 09 Jun 2009 14:57:00 EST. Please see our terms for use of feeds.

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