What hurdles on Hummer's China road? - special

17:03, June 04, 2009

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

 

Chinese enterprises should better prepare for integration
sufficient knowledge of host countries necessary.

Chinese enterprises active in global restructuring
Globalization still on, investment costs down, Chinese investment welcome, Chinese companies stronger…

Conflict management an important lesson for China's overseas buyout
Post-merger integration of enterprises is in fact the real challenge

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

· What should China's auto industry learn from GM declaring bankruptcy?

There is also a fever of “getting bigger” among Chinese automakers.

· GM lessons for Chinese autos

From where the two mega autos, Chrysler and GM lapsed, China's auto companies -- regulators in Beijing too -- have lots to learn.

· Who will lead in the post-GM era?

GM's application for bankruptcy protection create opportunities for the automakers in Japan and Europe, as well as those in China.

· GM still runs smoothly in China - special
· Only one third of Chinese enterprises' overseas investment projects successful

Chinese enterprises should take a "cautious attitude".

· Quality concern the biggest problem for China's outbound investment

The biggest challenge that Chinese enterprises have met with in their overseas investment are the concerns of overseas consumers over product quality and safety.

· China concerned about trade and investment barriers

"International trade and investment environment has deteriorated for Chinese companies due to various barriers since the international financial crisis began,"

· China expands overseas investment in first quarter

More support will be given by the government to facilitate overseas investment by Chinese enterprises.

· China issues guidelines for overseas investment

The guidelines are based on the laws, regulations and official statistics of the countries and regions

· China's overseas investment focusing on manufacturing

Asia is the top destination, followed by North America, Western Europe and Africa.

· China's overseas investment exceeds 50 bln USD in 2008

It nearly double that of 2007.

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by people's Daily Online,all rights reserved