Hummer to be sold to Chinese firm

General Motors is to sell its Hummer brand to China’s Sichuan Tengzhong Heavy Industrial Machinery for an undisclosed amount.

This deal will save about 3,000 jobs in the US and Hummer will remain based in the US, but might be with better efficient engines, and price tag, that GM somehow never achieved. Also this will be first foray by a Chinese company into the U.S. auto market.

Tengzhong is a privately held maker of road, construction and energy industry equipment based in the Chinese province of Sichuan.

Hummers were originally built as military off-road vehicles by a company called AM General.

Since GM bought the Hummer brand in 1999, it just kept it on same old  gas-guzzling machine platform, that Army can afford but not ordinary Tax paying customer. High cost of fuel, performance and military image have made hummer become less popular in US and thus GM made $100m from the sale, though GM had hoped to make more than $500m (£302m).

Still, the sturdy and off-road-capable Hummer has the potential to make sense in developing countries that lack good roads, says Jim Hall, managing director of 2953 Analytics. He says the new owner will need to develop a clean diesel engine for Hummer trucks and focus on developing smaller Hummers.What If, high paying CEO’s of GM thought about this before or bothered to travel to overseas countries and study/learn or use overseas expertise to make US made vehicles more fuel efficient. Now Finally Chinese company will help save some 3000 jobs of hard working employes, who devoted there whole life to GM, thinking that’s there life and got in return what.. FIRED… when they still don’t know what’s there fault.

“Hummer is sized wrong for markets outside of the Middle East,” Hall says. “And they’ll need to find a partner for clean diesels, because GM won’t be able to help them with that.” Mr Hall said….finally someone saying it right.. but its why now… why not when GM wanted this information…

Last year Ford Motor Co. sold Jaguar and Land Rover brands to India’s Tata Motors Ltd. at $1.7 billion (roughly a third of the price it paid for the two luxury brands when Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000).

Selling the companies at such a loss clearly shows American Companies such as FORD or GM, CEO’s not doing there homework correct and finally making there workers pay for it. Erich Merkle vice president of auto industry says “buying them was a mistake for Ford.

Again Q’s still remain same,

• why these consultants not consulted well in time, or
• why no one suggesed these auto makers to make fuel efficient cars.
• Why they not updated cars and made them fuel efficient when Korean, Chinese, and Indians companies achiaved same bench mark who started Auto manufacturing much late and almost 2~3 decades after American Auto revolution.

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