What hurdles on Hummer's China road? - special

17:03, June 04, 2009

What hurdles on Hummer's China road - People's Daily Online


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On June 2, GM announced that it had reached a memorandum of understanding with Sichuan Tengzhong Heavy Industrial Machinery Co. Tengzhong Corp. will acquire the GM's Hummer brand and its management and operation teams.
This memorandum makrs another important step in the reconstruction of GM. It is claimed that the sale of Hummer will not affect the operation of GM in China.
GM indicated that headquarters and operational institutions of Hummer would stay in the US and the current management would also be kept.
The deal will be closed at the end of the third quarter of this year. The deal also needs to conform to special conditions and go through relevant legal procedures. Sichuan Tengzhong said on June 3 that it has no plan to manufacture Hummer in a Chinese plant.

About Tengzhong

Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd., established in January 2005, specializes in manufacturing of special-purpose vehicles, road and bridge components, construction machinery, new energy and petrochemical equipment.
In May 2007, the company invested 1.4 billion yuan to jointly build an industrial zone in Xinjin, Sichuan Province with Sichuan Huatong Investment Holding Co., Ltd.
In October 2008, Tengzhong invested 3.5 billion yuan to establish a manufacturing base in the Deyang Development Area, Sichuan, producing large-scale wind turbine and petroleum drilling equipment.

About Hummer

Hummers were originally the M998 High Mobility Multipurpose Wheeled Vehicle (HMMWV/Humvee) built by AM General Corporation for the US Army.
In 1992, AM General began selling cililian version of Humvee under the brand name "Hummer".
In 1998, AM General sold the brand name to the GM.
In mid 2008, due to the decreasing demand for large SUVs as a resule of rocketing oil prices, GM suggested the possibility of "Hummer" brand being sold.
On June 2, 2009, GM announced that the company has had a tentative deal to sell its Hummer brand to Chinese-based Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd

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