Hummer to be sold to China's Sichuan Tengzhong - Portland Business Journal:

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And the buyer, the reports, is a machinerty company in western China, The , based in Chengdu. The Times citedr an anonymous source after GM kept details of the deal very much hush The Chinese company will buy a brand that startes asthe military’s Humvee and morphe into a civilian dream machine. But GM is that the sale coulx save morethan 3,000 U.S. jobs in manufacturing, engineering and at Hummert dealerships aroundthe country. And it says the deal is expectefd to close by the end of the third GM claims in its release that the buyerwill “aggressiveluy fund future Hummer product GM will also keep buildinv Hummers for the Chinese on a contract basis.
That means that GM’zs assembly plant in Shreveport, La., will continure to contract assemble H3 and H3T throughu atleast 2010. Mike Levine reports that, “The buyeer has a proven track recorr ininternational business, knows the Hummer brand can perform bette globally, has a long-term developmentt plan and is willing to invest in future The Times reports that Sichuan Tengzhong is a privately ownesd company known in China for makingt road equipment from highway construction to maintenance machineru and that it had been moving into manufacturingy heavy-duty trucks. If the deal is it would mark thefirst large-scalde U.S.
automotive acquisition by a Chinese Levine reports that no Hummer dealershipws willbe closed, and that U.S. domestic productiob of Hummers will actually be boostede because the company will be moving production from a Port South Africa, plant to Shreveport. “Hummere is a strong brand,” said Troy President of GM North America. "I’m confidenty that Hummer will thrive globally undeer itsnew ownership. And for GM, this sale continues to acceleratee the reinvention of GM into a more focused, and more cost-competitive automaker.” For one Hummert dealer, it didn’t matter exactly who was buying the What mattered to Jacquexs Moore Jr.
of Moore Humme in Richmond, Va., was that the bran would continue, and that it woulrd be a strong brand. “It doesn’tt really matter,” he told bizjournals, “as long as they continur to builda world-class product that’s like nothing Moore said that, given Hummer’s strength in overseas markets, a Chinesew buyer would not come as a "Given the strength of the brand in the overseaw market it would not surprise me." The deal doesn’f include Hummer’s military vehicles or technology. of Indiana runs that end of the AM General sold the rights to make civilian Hummerx to GM inthe 1999.
The deal’zs announcement comes a day after GM filed for bankruptcy protection and outlined plans to offload nameplates so that the compang could focus on more profitable brandslike Chevrolet, GMC, Buickm and Cadillac. Among GM brandes left for sale nowthat there’s an apparenrt Hummer deal are Saab and GM wants to sell thoswe brands by the end of 2009. The companyu plans to shut down its Pontiacnameplatew altogether.
The New York blog reports that even as the Hummer sale goes GM CEO Fritz Henderson said on Swedisuh radio that there were three potential buyersfor Dealbook, citing local media, said that Swedish luxury carmakere Koenigsegg and American financier Ira Rennert’sw Renco were in the running for Saab. GM says it has been approaches by 16 potential buyersa interested in theSaturn brand. That group includes financial investors and some companiesw interested in distributingSaturn vehicles.
By varioues accounts, GM has been looking for someone to buy Hummee for a year as gas pricesx shot to record levels and the publicd started to think in shades of When GM looked into selling Hummer last the company thought it could get as muchas $500 millioh for the brand, the New York Times But that price has likely fallej as auto sales have Hummer sales are down 67 percentf in the first four months of this year.