Posts Tagged ‘GM’
General Motors announced that the deal with Chinese firm Sichuan Tengzhong Heavy Industrial Machines Co. Ltd. to purchase the HUMMER brand cannot be accomplished and so the brand shall be folded.
The deal with Tengzhong was thought to be the savior of the GM brand and about 3,000 jobs ranging from engineering, dealership, and manufacturing in the United States. The plan also had provisions for the Chinese company to infuse a ton of funding for future programs and products of HUMMER. This includes the possibility of the compact H4.
The chances of the sale weakened as a result of several factors. The sales figures of HUMMER are very poor plus the concern of the market today for the environment, and the economic meltdown. The left hook, right straight, uppercut combination was just too much and knocked out the deal.
GM assured the public that they will continue to honor warranties issued to HUMMER owners. You also don’t have to worry about spare parts and support if you are an owner of this hard edged metal truck.
The call for greener vehicles was one major factor with the declaration of Chapter 11 of General Motors serving as final blow to HUMMER.
The chance to save HUMMER is defined as impossibile. It is a clear flatline. We pay our respects.
HUMMER.
1999-2010.
Following the filing of bankruptcy last Monday, GM announces the advanced negotiations with Tengzhong Heavy Industrial Machinery Company of China about the possible sale of the Hummer brand.
The American car manufacturer has announced the inevitable fate of the Hummer brand mid of last year. Hummer suffered primarily because of the recession brought about by the global credit crunch. Sales also dropped due to growing concerns about the environment.
The two parties have signed a memorandum of understanding. The talks might enter the closing phase by the third quarter of 2009 where GM and the Chinese company will agree on the regulatory approvals.
Sealing the deal will mean about 3000 jobs in the US manufacturing sector, car dealerships, and engineering. The Tengzhong has also plans of injecting massive funding into the Hummer brand including production of a compact H4.