New Hummer Owner Leaked
May 4, 2009
The mysterious winning buyer of GM’s Hummer brand is yet to be revealed. However, sources with knowledge of the situation say that the prospective buyer is the Sichuan Tengzhong Heavy Industrial Machinery Company, a private company based in Sichuan Province, China that manufactures equipment for the road, energy, and construction industries.
The Sichuan Tengzhong bid is pegged to be somewhere between $150 million and $250 million. The deal also involves additional commitments from Sichuan for a long-term agreement with GM on contract assembly and supply.
The new owner will also continue production of Hummers in the US for a predetermined “transitional period”—a move that could help save the jobs of some 3,000 workers at Hummer’s dealers and factories. Of course, anything beyond that transitional phase is the prerogative of the private equity investors that own Sichuan Tengzhong. The exception seems to be the Shreveport plant, which will build Hummers at least until 2010.
The Hummer sale is just the latest development in the ongoing overhaul of the US automotive industry. GM’s Pontiac, Saab, and Saturn brands should also have new owners by next year.
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Hummer Sale Expected to be Announced Today
May 3, 2009
General Motors has filed for Chapter 11 bankruptcy, and the cascade of events that have been in motion for several months back are already starting to unfold. One such event is the sale of GM’s flagging Hummer brand, which is expected to be announced today.
Sources privy to the situation have claimed that Hummer is holding on to 3 bids worth between $100 million to $200 million. The buyer will likely rein in GM’s 125 North American dealers along with a commitment to invest further on other aspects of the business such as engineering and marketing. The only exception to the sale will be the Shreveport, Louisiana facility where GM continues to build the Hummer H3 to supply exports.
Hummer sales continued a downward spiral in May 2009, selling 62 percent less vehicles than in 2008. For the first half of the year, sales are down some 40 percent.
It should be interesting to see who ends up taking Hummer and what the buyer does to turn the brand’s fortunes around. While GM is expected to announce the sale, that doesn’t necessarily mean that the company will be naming the winning bid right away.sleepless in seattle movie download download saving sarah cain freelionheart divx movie online kill switch download free
Hummer Sale in Jeopardy
January 11, 2009
News of the Hummer-Tengzhong deal broke out faster than a Kobe Bryant fade-away. Now, it seems that the Chinese government wants a say in the deal – a potential snag that could block the sale, at least for now.
The Chinese government says that it wants more energy-efficient vehicles out of the deal, and that’s not really up the alley of Hummer’s big boys. Some sources suggest that the government is also not quite comfortable with the idea of a relatively-new firm that has zero overseas experience to take on such a risky business as Hummer.
Some people may have views and speculation, but the Chinese government has a process that we respect, said a Tengzhong spokesman. We have only just signed an MOU (Memorandum of Understanding), but as we develop our proposals with GM and Hummer we will continue to work with the appropriate authorities.
The Chinese government’s opposition could also give Tengzhong a hard time when it comes to acquiring funds to purchase hummer. The US government, on the other hand, would just be relieved to see GM let Hummer go, so there’s no opposition expected there.
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