This typifies the changing face of the USA auto industry
GM Hummer....welcome the Tengzhong Hummer
GM sells Hummer brand to Chinese firm
Hummer, the off-road vehicle that was once a symbol of America's love for hulking trucks, is now in the hands of a Chinese heavy equipment maker.
General Motors Co and Sichuan Tengzhong Heavy Industrial Machinery Corp finally signed the much-anticipated deal to sell the brand on Friday, according to a joint statement issued by both companies.
Tengzhong will get an 80 per cent stake in the company, while Hong Kong investor Suolang Duoji, who indirectly owns a big stake in Tengzhong through an investment company called Sichuan Huatong Investment Holding Co, will get 20 per cent.
He also is the controlling shareholder and chairman of Lumena Resources Corp, a Hong Kong listed mining company.
Financial terms were not disclosed, although a person briefed on the deal said the sale price was around $US150 million ($A165.54 million). GM said in its bankruptcy filing last (northern) summer that the iconic brand could bring in $US500 million ($A551.82 million) or more.
The person did not want to be identified because the terms are being kept private.
The investors will also get Hummer's nationwide dealer network.
GM and Tengzhong said in a statement the transaction must still be approved by US and Chinese regulators.
Fossicker
Easy, gents....
It appears Tengzhong will only SELL Hummers in China for GM, not manufacture them.
GM only owns the rights to the Hummer name. They're still built by AM General, at least for the military. (The civilian Hummer is no longer sold in the U.S.)
Super Moderator
It's the H3 that are to be made in China the H2 will continue to be manufactured by AM General under contract to GM. Chinese company to buy Hummer from GM - Autos- msnbc.com "As part of the proposed transaction, Hummer will continue to contract vehicle manufacturing and business services from GM during a transitional period. For example, GM’s Shreveport, La., assembly plant would continue to contract to assemble the H3 and H3T through at least 2010, GM said. AM General LLC in Mishawaka, Ind., makes the larger H2 under contract for GM."
The military variant HMWV has nothing to do with the GM sale to the Chinese.
You won't find me on: faceplant; Scipe; Infragam; LumpedIn; ShapCnat or Twitting. I'm just not that interesting.
Fossicker
Hmmm.... I'm getting conflicting information. Even in that article you linked to, in one breath seems to say they sold Hummer, and in the other say they sold the rights to sell the Hummer.
One thing's for sure, I'm just glad I'm not an American autoworker!
ChatterBox
don't think after the transition, that it will continue to be made in the US if they can have it made in Chine at a tenth of the labor cost ...just MHO ...
Super Moderator
It's all corporate financial wheeling and dealing.Originally Posted by Binford
In the final contract deal. GM will continue to assemble Hummer - H3 models at the Shreveport plant until June 2012 then the plant will close.
After June 2012 H3 will no longer be made in the US, but may be made in China because that's what the Chinese bought the H3 model.
The military variant Humvee, is still manufactured by AM General, a different company to GM.
AM General owns the name "Hummer" and it made the H1 and H2 (both civilian variants of the Humvee) for GM which sold them through it's dealer network. The H3 was built by GM for GM paying royalties to AM General to use the name Hummer.
You won't find me on: faceplant; Scipe; Infragam; LumpedIn; ShapCnat or Twitting. I'm just not that interesting.
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