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USA - Hummer leaves for China from USA - GM announces deal.

by israeli.agent | October 10, 2009 at 10:43 am

140 views | 26 Recommendations | 4 comments

Another one of brands that was the pride of Americans is going to go from American hands. Hummer, once known as the king of SUVs is being sold by GM to Sichuan Tengzhong Heavy Industrial Machinery as per an agreement made between these two companies.

The deal is believed to be of $ 150 million

General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), today announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM's premium all-terrain HUMMER brand.

Under the terms of the definitive agreement, the buyer will acquire the ownership of the HUMMER brand, trademark and tradenames, as well as specific IP license rights necessary for the manufacture of HUMMER vehicles. The buyer will also assume the existing dealer agreements relating to HUMMER's dealership network.

Tengzhong intends to purchase HUMMER through an investment entity, in which it will hold an 80 percent stake. Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena, will hold the remaining 20 percent stake. Financial terms of the agreement were not disclosed.

The transaction is subject to customary closing conditions and regulatory approvals and/or review by government agencies in the U.S. and China. The completion of the definitive agreement enables the companies to continue and further the overall regulatory review process.

"HUMMER is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and HUMMER," said Fritz Henderson, GM President and CEO. "For HUMMER, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future."

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Babel-Fish

at 20:20 on October 10th, 2009

America selling its soul

israeli.agent

at 21:28 on October 10th, 2009

More or Less.

But apart from sentiments, it is significant that why this happened with Hummer. It seems that the demand for such gas guzzling, military grade vehicles are not a favorite for the Americans anymore. Maybe they are looking for more fuel efficient , echo friendly ones. Especially when the gas price is skyrocketing , lives getting lost in oil wars and then the country is still reeling under depression.

.Agent.

PIM of SPAIN

at 00:01 on October 11th, 2009

The Chinese got a lot of valuable technology for a pittance. The Hummer development mostly paid for by the Pentagon thus the taxpayer (!) is practically given away. Complacency for decades has governed GM and when they were brought to their knees, there was no other choice left. What is next on the agenda.... don't think the company yet has been turned around. A lot more suffering looks ahead.

everchanging

at 21:35 on October 24th, 2009

$150,000,000 dollars and China gets the hummer, while Americans and America gets hummered by GM twice - one for the Hummer and the second for not sell the Saturn to Penske motors to keep it at price that would keep it alive and coming back for more - really makes you wonder who get the pie in the face this time. Where is the Obama bailout $ to keep GM from kill America skilled workers jobs (13,000+) from being unemployed now? Why can we bail out Banks and others institutions, but not to keep one automobile alive (Saturn) and being built on American soil - while retaining the infrastructure America was known for in the past.

Penske needs to use Lobbyists in Washington D.C. to get GM to give it away (Saturn) at pennies on the dollar from the original price offered to GM. That to me would make up for some (not alot) of the bailout money set to GM before filing for Bankruptcy...