kingkilburn

BREAKING: GM officially sells Hummer to China's Sichuan Tengzhong — Autoblog

PRESS RELEASE

General Motors and Tengzhong Sign Definitive Agreement For Sale of HUMMER

DETROIT and SICHUAN, Oct. 9, 2009 - 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."

Under the agreement, HUMMER would contract vehicle manufacturing, key components and business services from GM during a defined transitional time period. For example, GM's Shreveport assembly plant would continue to contract assemble the H3 and H3T and AM General's Mishawaka assembly plant will continue to assemble the H2. Both facilities will produce the specified vehicles until June 2011, with an optional one year extension until June 2012. The deal is expected to secure more than 3,000 jobs in the U.S. related to the sale and manufacturing of HUMMER vehicles.

HUMMER will continue to be managed by members of its existing leadership team including James Taylor, who will remain in his current role as HUMMER's chief executive officer. Prior to joining HUMMER, Taylor was General Manager of Cadillac where he oversaw a reinvigoration of the brand, leading key innovations in design and technology as well as the development of new models.

"We are fortunate to have a partner who understands and recognizes the importance of continuing investment in HUMMER's heritage as a U.S.-based and branded company with a view toward capitalizing on global opportunities," said Taylor. "Backed by a privately owned and well-capitalized company, we are going to be able to focus on providing customers with more efficient models that deliver HUMMER's promise of authentic, purpose-built design and engineering."

Once the transaction is complete, HUMMER will become the first automaker to offer an alternative fuel powertrain in every model, with the addition of E85 FlexFuel capability in the 2010 H3 and H3T. HUMMER is also in the process of obtaining emissions certification for a diesel H3 that will be introduced in markets outside of North America. The brand's future product development will focus on improving efficiency and performance in current HUMMER models with alternative fuel powertrains, more efficient gas engines, 6-speed transmissions and diesel engines.

"This transaction marks an exciting step for both Tengzhong and HUMMER, as we invest in a business that has significant opportunity in the U.S. and around the globe," said Yang Yi, chief executive officer of Tengzhong. "We are excited about some of the initiatives already underway at HUMMER that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel-efficient vehicles to meet not only future regulations but also customer expectations."

Credit Suisse is acting as exclusive financial advisor and Shearman & Sterling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.

For more information on the agreement go towww.transactioninfo.com/tengzhong.

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HyperTek

was more of a "Status" vehicle more than anything

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Keep it Classy

ThatGuy

H1's were the only trucks worth a damn.

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exitspeed

Agree'd. I'm glad they sold Hummer. Good reddens. One step closer to a healthy GM.

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YoungGun

Good .

kingkilburn

I think the H3 was okay for an Envoy variant but the only one I'd own is a DOD surplus MP truck.

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zylvia213

^^^ H1's look hard... the new shit too much of a bling bling deal IMO....

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S14_Kouki

agreed. h2's and h3's are for girls

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Matej

Kind of funny how the American symbol of overabundance and 'we don't give a ...' attitude was sold to China. Times are changing.

So are Hummer and the contractor who builds Humvees for the military two different companies or what?

sacco sideways

im worried about our troops/vehicle secrets. idk what they had for military vehicles but now they can top our military in one aspect. if you get what im saying...

SimpleS14

I'm pretty sure there is a NDA intact in regards to military spec'd designs that were used in the past.

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hammer.time

for deployed environment there are very few hummers in use as far as convoy purposes. MRAPs and Maxpros are what is being used now. Up armored hummers dont hold up well to IED blasts. So i wouldn't really worry about selling our hummer secrets

lewisfk

I agree with your comments, but if they want to steal what ever secrets please due! It will make it easier to kill who ever acquires the info! I watched my buddies humvee flip in the air like a kid chunking a matchbox car! Thats when I new the only way to stop a marine unit is to attack our weakness! The humvee with or without armor!

DALAZ_68

qftmft


and good ridance

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hammer.time

I own a 09 H3, and i bought it knowing full well Hummer was going away. But for the size, price, and its fuel economy there are very few things in its class that i liked. I needed a midsize suv that gets better than 10-15mpg and the H3 fit in perfectly. My other option was the jeep wrangler unlimited. I have 33's on my h3 and have taken it offroading a bit, nothing too technical and it performed very well, the power could be better. It has features that show it was designed to do offroading with the ability to lock just the front diff or just the rear or both at the push of a button. Im going to be doing some bigger wheels and 35's soon and some bolt ons and hope to get some more low end power

kingkilburn

To get a few things cleared up here;
1. The Humvee was developed in the 70's. There are no secrets left about it. In fact it is the basic model for light infantry vehicles all around the world.

2. The company that actually manufactured Humvee is not at all affiliated with GM. The extent of their partnership was the drive train and those are parts you can buy in a catalog(no secrets there either). GM got the license to build a civilian version.

EDIT: That company is the only surviving part of the old AMC btw American Motors General.

EDIT Part 2: Two Chinese companies have been building HMMWVs under license since 2003.

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hammer.time

very true pretty much all the nato forces use up armored us military hmmwv's along with some of their own vehicles. Even the afghan/iraqi military uses older versions of the up armored hmmwv's that were used in the early years of the war and have since been replaced

Bubbles

I'm ALL about the bling bliiiiiing.

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RiversideS13

i think they are just trying to duplicate the design and engineering to bring up their car industry.

Dalton918

^ by selling our shitty gas guzzlers that nobody wants?

TheWolf

AM general builds Humvees. GM builds Hummers.

I saw a H3T with a slant back cover on it like that MP humvee.. Looked hawt.. hot enough for me to stop and take a look.. then saw it was priced at 41k. I was like WTF. that's a envoy with a 2" lift. 14/18mpg didn't help it. Back in my AWD suzuki GV with low range gears and f&R lsd's... go just about anywhere that thing will...

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ixfxi

Oh no, what will all the ring-tone rappers rap about now?


I guess this economy is really gonna burn them, they'll actually have to (gulp) rap about tough times and poverty as opposed to rapping about spinners on a Hummer or Escalade.



"So don't front, MC Ren 'Cuz I remember when you drove a B210"

Ah yes, I remember the good ol days. When rap was rap.

DataXUnknown

Goodbye Hummer.

Future240

I would celebrate more if this had been done 2 years ago.

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lazysk8er2

YouTube - Chinese car crash test failure

^^^dont buy china brand cars

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implayaz9

Waist of time!

pinky121388

i hate hummers, they are fail.. Its like in Houston everyone drives a yellow one.