Hummer | GM Authority

Hummer Finds Love In An 849 Unit Order, Production To Restart
by Manoli Katakis
Posted March 11th, 2010 at 2:45 pm

Although Hummer’s tires are sinking into quicksand – and may remain there if a qualified new buyer does not come forward soon – an undisclosed buyer (or maybe even many buyers) have given GM reason to kick-start the Shreveport, LA plant back into action. The plant, having been idled since January 2010 upon ceasing production of H3 and H3T models, will reopen from April 12 to May 13 to fulfill a rather eye-opening 849 unit order.

The recent fall-through of the Hummer sale to China’s Sichuan Tengzhong, in no small part thanks to the Chinese Government, presents quite the mountain to climb (even for a Hummer). And though the future of the uber-SUV brand remains uncertain at best, this writer still has a few ideas on how Hummer could become an off-road juggernaut over Jeep and Land Rover once again.

[Source: Hummer Guy via Autoblog]

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Poll: Will Hummer Survive Past GM?
by Alex Luft
Posted March 2nd, 2010 at 9:33 am

Given the recent developments with Hummer, do you think it will have a life after GM?

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Hummer Could Be Pulled Out Of The Mud By Other Bidders
by Manoli Katakis
Posted February 25th, 2010 at 3:09 pm

As we learned yesterday, GM’s sale of Hummer to China’s Sichuan Tengzhong Heavy Industrial Machinery Co. went sour due to Tengzhong’s failure to secure approval of the Chinese government. According to the Wall Street Journal, two bidders have expressed renewed interest. The WSJ would not go so far as to specify just who is interested in the ailing uber SUV brand, but did say that the latest suitors have previously submitted bids for Hummer, only to have been passed over by The General in favor of Tengzhong.

Citing a person familiar with the situation, the WSJ reports that GM is said to be giving these bidders a fresh look even after picking Sichuan Tengzhong.

It’s very easy to remember the whole Saab Sales Saga when looking at this situation. Though we at GM Authority hope for an eventual sale of Hummer, we don’t wish for such a roller coaster that ultimately became the sale of Saab. Hopefully the go-anywhere SUV brand does not go the way of Saturn (or Pontiac), although it looks like it has already purchased its one-way ticket.

Trust GM Authority to keep you posted as the story develops!

[Source: WSJ]

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Another One To The Automotive Graveyard: GM Officially Announces Wind Down Of Hummer
by Alex Luft
Posted February 24th, 2010 at 3:55 pm

After this morning’s rumors that GM’s sale of Hummer to Sichuan Tengzhong Industrial Machinery Co. was not approved by Chinese regulatory powers that be, The General has just announced that it will begin the orderly wind down of Hummer operations. According to John Smith, GM Vice President of Corporate Planning and Alliances,

One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed. GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner.

As we learned with the Saab Sales Saga, this may not mean anything in particular, as a last-minute buyer may swoop in to save the company from the automotive graveyard, where Saturn and Pontiac shamefully lie. Nevertheless, GM will continue to honor Hummer warranties as well as providing service support and spare parts to current owners around the world.

Stay tuned as it happens…

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Rough Terrain: GM’s Hummer Deal With Sichuan Tengzhong Apparently Denied By Chinese Authorities… Maybe Not
by Alex Luft
Posted February 24th, 2010 at 1:51 pm

Chinese regulators have failed to approve General Motors’ proposal to sell Hummer to Sichuan Tengzhong Heavy Industrial Machinery Co., according to two people close to the deal.

The approval was the last hurdle for the deal to go through, which would transfer ownership of the legendary American SUV brand to the privately-owned Chinese maker of special-use vehicles, structural components for highways, bridges, and construction equipment for only $150 million. This amount is nearly 70 percent less than GM originally valued the brand in bankruptcy court in the summer of 2009.

In the beginning of 2010, GM extended the deadline for the sale until the end of February. (more…)

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At Odds: Plan To Keep Shreveport, LA Plant Alive Rides on Chinese Approval
by Wilson Nunnari
Posted February 23rd, 2010 at 7:02 pm

Hummer’s sale to Sichuan Tengzhong Heavy Industrial Machinery comes with a boatload of baggage. GM’s finances, jobs, and the brand’s continued existence are only a few of the major items on the line. Under the “jobs” category is the Shreveport, LA plant. If the deal with the Chinese industrial machinery firm does not go through, the facility will be shut down. Officials expect the sale to be completed by the end of Q1 2010, with the Chinese government remaining the only roadblock to the transaction.

The plan to keep Hummer manufacturing at the plant may bring with it the production of other brands at the facility, as Sichuan Tengzhong would only need 25 percent of the capacity for Hummer production. The Shreveport Times describes the plant as an “automotive mall with Hummer as the anchor tenant.”

Recently, incentives have been discussed with the involved companies. An exemption from sales tax on equipment and donated land for plant expansion are the in the cards. This, however, may not be enough to plan against the $40-200 million that have been estimated as layouts for plant upgrades. Plans to upgrade the facility are secondary to the Hummer deal, which has a ticking clock built in.

While a repeat of the Saab Sales Saga would be acceptable, the delays and back-and-forth waffling would sure be nice to avoid. At least this time The General won’t make any announcements to wind down the brand until the Chinese government approves of the deal.

[Source: Shreveport Times]

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Nostalgic Scenario: If I Could Control GM’s Departed Brands.
by Manoli Katakis
Posted February 13th, 2010 at 3:00 pm

We know the fate of Pontiac and Saturn. We know that Saab is taking off with Spyker while Hummer, the uber American SUV brand, is close to becoming a Chinese-owned entity. Yet secretly somewhere inside, we wish GM had room for all of these brands.

Let’s step into the Twilight Zone of GM proposals, imagine that I just became the owner of all four of GM’s departed brands, and started another major American automotive company. I want to succeed where GM failed. Assuming I will have access to GM’s engines and platforms – future and dormant, here’s how I’d do it, brand by brand. (more…)

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GM Agrees To Extend Hummer Deal Deadline
by Alex Luft
Posted February 1st, 2010 at 1:28 pm

GM has agreed to extend the deadline for the sale of Hummer to Sichuan Tengzhong until the end of February. According to Reuters, The General allowed Sichuan Tengzhong Heavy Industrial Machinery Co. – a little-known maker of heavy machinery in southwestern China – to have some more time to complete its purchase of the legendary SUV brand.

Tengzhong signed a contract with GM to buy Hummer back in October 2009 and has been waiting for a green light from Beijing to approve the deal. This original contract expired January 31, 2010.

Rumor has it that Chinese powers-that-be aren’t content to acquire a gas-guzzling brand at a time when fuel-efficiency is all the rage. Tengzhong better work hard and speed up the Chinese bureaucratic process if it wants to get a taste of a global automotive brand. Cuz – you know – February is only 28 days long in 2010 – no matter where you are!

[Source: Reuters]

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Analyst Skeptical About Successful Hummer Sale
by Alex Luft
Posted January 19th, 2010 at 2:11 pm

When GM reached a tentative agreement regarding the sale of Hummer with China-based Sichuan Tengzhong Heavy Industrial Machinery Co. in October 2009, the only thing left was for the Chinese government to approve the deal. Three months later, the deal has still not received the green light and some are doubting whether it will be authorized at all.

“I don’t believe it has a great chance. It hasn’t really gotten any approval from the major government agencies,” said China auto industry analyst Wayne Xing.

Kevin Wale, President of GM’s China Operations, said he was optimistic the deal would be successful, yet unsure whether it would receive the required green light from the Chinese government. GM has expressed interest in closing the Hummer deal by the end of 2009 or early 2010, with Chairman and CEO Ed Whitacre pointing to January 31 as a deadline.

If the deal with Tengzhong doesn’t go through, we may risk seeing a repeat of the Saab fiasco. This time, however, it may be without the involvement of other governments.

[Source: Freep]

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Hummer Sale To Chinese Tengzhong Looking Brighter
by Alex Luft
Posted August 24th, 2009 at 7:57 pm

When GM filed for bankruptcy on June 1st of this year, it revealed that the Hummer brand would be discontinued. The next day, The General announced that it would sell Hummer to an undisclosed Chinese manufacturer, which later turned out to be Tengzhong (Sichuan Tenzghong Heavy Industrial Machinery Company). And that’s when obstacles began to spring up left and right.

First, the Chinese government opposed the sale because Tengzhong, a little-known Chinese machinery maker, simply lacked experience in the car industry. Then U.S. citizens and politicians feared that turning over Hummer to another nation would result in wiping out the brand’s manufacturing plants and dealer networks at home.

The opposing voices have quieted down over the last few weeks, after China’s commerce ministry commented in a positive manner on the deal, saying that Tengzhong’s move is normal for a company looking to take advantage of the global down market. On the U.S. front, Tengzhong has agreed to maintain Hummer’s dealer network oce the transaction goes through.

“Market sentiment on the Hummer has turned more positive lately as industry insiders and media come back to their senses from the initial shock,” said Chen Qiaoning, an analyst with ABN AMRO TEDA Fund Management. “It seems to me that the Chinese government has little to lose giving the greenlight. Tengzhong is a privately-owned company and the Hummer deal won’t cost any state money,” Chen said.

Tengzhong expects to complete the deal in the third quarter of this year and expects to pay in the range of $150-$200 million in total, which is considerably less than GM’s original asking price of $600 million last year.

This humble blogger has been a long-standing fan of Hummer products, whether it’s the original H1, the humongous H2, or the more mainstream (and more attractive) H3. The mere toughness of the brand, coupled with its “off-road” lifestyle is something I greatly appreciate on a personal level. However, many Hummer customers seemed to have different goals for their off-road machines (pictured).

Hummer H2... not serving its purpose

Would I consider buying a Hummer if it’s owned by a Chinese parent company? If it’s an awesome product, you bet! That is, unless GM can fill the gap in its lineup created by the sale of Hummer (something like an F-150 Raptor, perhaps?)

Still, it’s important to keep in mind that selling Hummer goes along with the “New GM” strategy of positioning itself as a more efficient and lean automaker with fewer product lines and less niche vehicles/brands. It will have achieved the same goal by selling Saab. Therefore, this humble blogger supports the sale of the “Like Nothing Else” brand wholeheartedly if the General is still around.

[Source: Reuters]

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