Hummer sold to China

[Tempest]

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0Erg3Bcoz74&refer=home
Quote:
June 2 (Bloomberg) -- General Motors Corp. plans to sell its Hummer brand of sport-utility vehicles to Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd., a Chinese equipment maker, according to five people familiar with the situation.

GM, which filed for bankruptcy protection yesterday, has a memorandum of understanding with the Chengdu, China-based company, said the people, who declined to be identified because the agreement is confidential. At least one other party is still interested in buying Hummer, though those talks are on hold, one of the people said.

The deal should be completed by the end of the third quarter, Detroit-based GM said in a statement today disclosing the memorandum of understanding. The biggest U.S. carmaker didn’t identify the buyer or financial terms of the accord. Hummer was estimated to be worth $500 million, Chief Executive Officer Fritz Henderson said in bankruptcy court documents.

 

[opus1]

Not with a bang, but with a whimper......

 

[Johnny]

Well, take that off of my desirable car list.

 

[ViragoBry]

Good riddance. Now China can cheap them out and attempt to sell them here..and will probably succeed.

 

[addyguy]

Ouch. Selling a division that's original purpose was to build military vehicles to China, so they can build them, and sell them to countries/armies America WOULDN'T sell them too...great.

 

[Bill in Utah]

So I wonder if the devil will allow them to be sold in the US?

 

[Jim Spahr]

GM sold the Hummer H2 and H3 which are the civilian versions. The military H1 version will still be built by AG in Indiana. The GM H2 is actually a Suburban chassis and drive train with a Hummer H2 body on it. Likewise, the GM H3 is a Chevy Colorado chassis and drive train with a Hummer H3 body on it. In the H3, they use either the I5 or a 5.3L V8, not the I4.

 

[Johnny]

Originally Posted By: addyguy
Ouch. Selling a division that's original purpose was to build military vehicles to China, so they can build them, and sell them to countries/armies America WOULDN'T sell them too...great.


Not quite. GM owned Hummer, the Humvee is still made by AMGeneral and China won't get that. Two separate companies.

http://www.amgeneral.com/vehicles/hmmwv/

 

[StevieC]

Isn't China one of the worst polluting countries? Only fitting that they get the "Biggest" polluting SUV on the road!

 

[440Magnum]

Originally Posted By: addyguy
Ouch. Selling a division that's original purpose was to build military vehicles to China, so they can build them, and sell them to countries/armies America WOULDN'T sell them too...great.



China has been building the Jeep Cherokee for years now (its still in production there as the "2500"):
http://www.chinacartimes.com/2007/02/26/get-yourself-a-jeep-2500-for-only-100000rmb/

Having Hummer just gives them a low-end less-capable vehicle with US military roots to sell in addition .

I think a lot of people also forget that GM didn't design the original H1 Humvee, either. That was AM General, which was at one time American Motors' heavy truck division then was bought by LTV around the Chrysler picked up AMC and Jeep, or even before that. The only thing GM about the H1 was the (POS) 6.2L diesel engine. And they don't even build THAT for military Humvees any more, AM General bought the design and started General Engine Products to improve it and build it:

http://www.optimizer6500.com/

 

[heavyhitter]

Originally Posted By: Bill in Utah
So I wonder if the devil will allow them to be sold in the US?



Doubtful. Looks like the top replacement choice for the Humvee is from BAE Systems.

The Hummer was actually not very reliable and some had MPG of only 5 MPG.

What bothers me though is that BAE is a German company, Id like to see our soldiers riding in vehicles made in America by an American company.
Hopefully Navstar or lockheed will win the contract.

 

[addyguy]

Good to know. Thought the whole group went to GM, and they stopped making the H1 for both military and civilian markets, as I had heard the H1 was being replaced as the US's war-vehicle....

Little suprised GM didn't keep the I-5 powered H3 to compete with the Jeep Wrangler. Still had a chance in that market....

 

[VNTS]

Originally Posted By: Jim Spahr
GM sold the Hummer H2 and H3 which are the civilian versions. The military H1 version will still be built by AG in Indiana. The GM H2 is actually a Suburban chassis and drive train with a Hummer H2 body on it. Likewise, the GM H3 is a Chevy Colorado chassis and drive train with a Hummer H3 body on it. In the H3, they use either the I5 or a 5.3L V8, not the I4.


Exactly.

Makes one wonder what they actually get, the name Hummer, the dealers, the closed GM truck plants or the tooling to move to China or maybe they just want to pay GM to make a few to export to China to sell over there. I doubt too many Hummers have been selling here in local dealerships and what does Hummer do once GM migrates to something else???

 

[Mr Nice]

Its good that Hummer was sold off.

 

[javacontour]

It appears for now, they will still be built here:

Hummer sold to China

How long will that be the case? Who knows.

 

[BrianWC]

The local plant makes the Colorado, Canyon, H3, and H3T. According to the local reports, the company is buying the brand and the speculation is that the H3, at least, will continue to be made here in Shreveport. It wouldn't be unprecidented. The same plant used to make the Hombre trucks for Isuzu... There are still Hummer buyers in the US. The new owners would be foolish to completly ignore the US market.

 

[Pablo]

I always wanted a Hummer in China.

 

[JHZR2]

Isnt BAE a British Defense company?

 

[PT1]

DETROIT – General Motors Corp. took a key step toward its downsizing on Tuesday, striking a tentative deal to sell its Hummer brand to a Chinese manufacturer, while also revealing that it has potential buyers for its Saturn and Saab brands.

GM has an agreement to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co. of China, said a person briefed on the deal.

The Detroit automaker announced Tuesday morning that it had a memorandum of understanding to sell the brand of rugged SUVs, but it didn't identify the buyer. A formal announcement of the buyer was to be made Tuesday afternoon, said the person briefed on the deal. The person spoke on condition of anonymity because the details have not been made public.

Sichuan Tengzhong deals in road construction, plastics, resins and other industrial products, but Hummer would be its first step into the automotive business.

GM said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships.

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

Buy American!!

 

[PT1]

Originally Posted By: StevieC
Isn't China one of the worst polluting countries? Only fitting that they get the "Biggest" polluting SUV on the road!

The Hummer has an I-5 engine which is not the biggest polluter