Chinese owner for Hummer

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GM has sold the Hummer brand to a privately owned Chinese company, Sichuan Tengzhong Heavy Industrial Machinery.

Specializing in heavy industrial and construction machinery, Tengzhong is based in the Schuan province and should have the deal wrapped up by the third quarter of this year.

Although the exact details and amount of money changing hands with regards to the deal are still secret, Credit Suisse is representing Tengzhong whilst America’s Citi bank is acting as financial advisor to GM.

Hummer’s 150 US dealers are expected to survive, yet with its unbundling from the GM stable, new manufacturing facilities will be needed, with the Shreveport, Louisiana plant (responsible for H3 and H3T) still on contact until the end of next year.

GM’s South African manufacturing facility in Port Elizabeth, which built right-hand drive H3s, is in the process of shutting down Hummer production.

AM General’s Mishawaka plant, located in Indiana, faces an uncertain future as it produces the oversized H2 Hummer derivative.

Although US workers will be glad the brand’s core management and dealership network remains, Oriental analysts are at a loss trying to understand the value of the deal. Tengzhong has no experience in the car industry and Hummer is a poisoned chalice of sorts in a world turning away from brash, inefficient, SUV vehicles.

One of the deal sweeteners is a long-term GM supplier agreement for Tengzhong, which could perhaps offset a loss-making Hummer purchase against high revenue supply contracts.

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  • http://jennifersaurya@gmail.com vga cable

    Oriental analysts are at a loss trying to understand the value of the deal. Tengzhong has no experience in the car industry and Hummer is a poisoned chalice of sorts in a world

  • http://www.irish-poems.com irishpoetry

    The Chinese must see something for themselves in the loss-making Hummer. Surely there must be some value in this deal for them.

  • http://www.mahindra.com/What-We-Do/Automotive/Products/Scorpio Neelpatel8462

    The HUMMER is popular because of its uniqueness and its appeal with the elite and famous. The HUMMER was definitely designed to be a powerhouse with a 393 horsepower engine. One of the best SUV in the world.

  • http://www.mahindra.com/What-We-Do/Automotive/Products/Scorpio Scorpio

    The H3 is far better than I expected. It has a great ride, super smooth. It is surprisingly nimble and has an amazingly tight turning radius. Nothing negative about this vehicle.

  • http://uewieth.notlong.com/ Raphael

    I think that it won’t stand a chance and not most of drivers would opt for a Hummer. I for one would be betting on Audi or Kia, which for me is dope.

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