Title says it all…
Rumors have been floating around all day since General Motors’ announcement early this morning that its off-road-ready Hummer brand will be sold to Chinese manufacturing company Sichuan Tengzhong Heavy Industrial Machinery Company. According to Hummer’s current CEO – who won’t be retained by the Chinese – the new buyer will expand the brand’s lineup and keep its United States dealership network.
The new Hummer will become the first mainstream Chinese brand to do business in the U.S. – but that’s not a bad thing, says Hummer CEO Jim Taylor, who spoke to Automotive News about the company’s new owners.
“We’ve been in talks with these guys for over six months,” Taylor told Automotive News in an interview. “The reality is in China you have folks that are willing to make investments all over the world and they go on a world search for a business that would be complementary for them.
“They see a lot of growth potential with this brand both inside and outside of China.”
Hummer’s 150 dealerships in the United States will survive, but since the automaker will no longer be a part of GM, it will have to set up its own engineering facilities. Taylor says that the Chinese owners plan to keep engineering in the U.S. and the company’s Shreveport, Louisiana, plant, which builds the H3 and H3T, will operate on a contract basis through at least the end of 2010. Taylor did not comment on the AM General plant in Mishawaka, Indiana, that builds the H2.
“We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S.,” said Yang Yi, CEO of Tengzhong in a statement.
The release also confirmed that Tengzhong will expand Hummer into new global markets, particularly China.
GM and Tengzhong expect to complete the deal by the third quarter of 2009. Credit Suisse will act as Tengzhong’s financial adviser, while GM will use Citi.
I don’t think I could find enough facepalm pictures to do this justice… Let’s see:
- take a crappy, oversized SUV lineup made for douchbags and middle-aged women
- let china and cut every corner possible in it’s production
I guess there is one postitive to this… now the asshats that need to drive these are really getting a POS. I say let China make all the oversized SUVs!