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Hummer Sale Falls Through

Chinese buyer may consider alternatives to save deal.

by on Feb.24, 2010

Barring a last-minute reprieve, the Hummer brand may have traversed its last trail.

The proposed sale of General Motors’ Hummer division to a Chinese heavy equipment manufacturer has apparently collapsed, though the proposed buyer, Sichuan Tengzhong Heavy Industrial Machinery Corp., is reportedly looking at alternatives that could overcome the apparent opposition of Beijing regulators.

Barring some unexpected reprieve, however, GM said that it is ready to start an orderly shutdown of the once-popular Hummer operation, one of four brands the company decided to close as sell as part of last year’s bankruptcy reorganization.

“GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner,” said John Smith, the U.S. maker’s director of corporate planning and alliances.

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GM and Tengzhong reached a preliminary agreement for the sale of Hummer last June.  The proposed deal came as a surprise for a number of reasons.  Some analysts had wondered whether any buyer would surface considering the sharp slump in sales of the brand’s products following the record run-up in oil prices the previous year.


Q&A: Hummer’s Jim Taylor

How do you translate, “The brand environmentalists love to hate,” into Chinese?

by on Jun.02, 2009

Hummer at the crossorads.  GM has signed a preliminary deal with a Chinese maker which hopes to take over the controversial SUV brand later this year.

Hummer at the crossroads: GM has signed a deal with Chinese maker Tengzhong. It hopes to take over the controversial SUV brand later this year.

Life — and business — can take some strange turns.  Jim Taylor is a great example.  He was trained as an engineer, yet somehow wound up taking over General Motors’ flagship Cadillac division and, as general manager, leading it through its “renaissance” project, with the launch of products like the well-acclaimed CTS sedan.

But a year ago, Taylor was unexpectedly reassigned to GM’s Hummer brand, a division that serves as public enemy number one for environmentalists.  Taylor’s primary job was to oversee the spinoff of the once-popular brand, one of the four divisions GM will shed as part of his Chapter 11 reorganization.

Early Tuesday morning, the automaker announced it had found a buyer.  Initial intentions to keep details secret didn’t last long, as the folks at Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd, in Chengdu, China, were quick to start crowing about their new acquisition.  From one of the symbols of American prowess to the latest Chinese toy, Jim Taylor talked with’s Bureau Chief Paul A. Eisenstein about the sale and what’s to come at Hummer, which he has agreed to stay on with when the sale is formalized, in the coming months.

Subscribe to TheDetroitBureau.comTDB: Hummer’s sale surprised some folks, who thought the brand was damaged beyond repair.

Taylor: The first thing investors look at it is cash: does it make money?  We’re peddling an asset capable of turning a profit.  We had to find someone willing to make a serious investment.  This is not for the faint-of-heart.  This is an expensive date and goes on for a long time.  In the auto industry, as we’ve all seen, you can chew through a lot of cash, fast, so we were looking for a select group of investors with very deep pockets and a long-term vision. (more…)

Hummer Sold, Will Saturn Be Next?

GM CFO outlines plans for new company; may initially withhold financial data.

by on Jun.02, 2009

GM CFO Ray Young: 16 bidders for Saturn, 3 for Saab. The post-bankruptcy GM could go public by 2010, but may withhold financial data until then, Young cautioned.

GM CFO Ray Young: 16 bidders for Saturn, 3 for Saab. The post-bankruptcy GM could go public by 2010, but may withhold financial data until then, Young cautioned.

With a buyer apparently chosen for its Hummer division, General Motors is now turning to Saturn, the once-vaunted brand that it also hopes to sell off as part of its effort to slim down through bankruptcy.  According to GM Chief Financial Officer Ray Young, there are now 16 potential buyers interested in Saturn, with another 3 looking at Saab, the Swedish maker GM also hopes to sell.

As part of yesterday’s bankruptcy filing, the ailing U.S. automaker intends to eliminate all but four of its brands, and along with the hoped-for sale of Hummer, Saturn and Saab, GM will also abandon its once-legendary Pontiac brand.  Meanwhile, the automaker will restructure its vast global empire, starting with the planned sale of a controlling interest in its European subsidiary, Opel, to a consortium headed by the Canadian supplier, Magna International.

“We’re still going to be a global company, but how we’re going to operate as a global company will change,” explained Young, during a 90-minute teleconference with automotive analysts and reporters.

Subscribe to TheDetroitBureau.comThe sale of Hummer was announced a few hours before the call, but Young declined to reveal the name of the buyer.  As reported, this morning, it appears the new owners will consolidate operations, which would mean some overseas production would be brought back to a Hummer plant in Shreveport, Louisiana, from the current site in South Africa.

How soon an announcement on Saturn and Saab will be made is uncertain.  The decision to sell the latter brand was not unexpected and, in fact, was long called for by industry analysts worried about GM’s deteriorating situation.  But the move to abandon Saturn is another matter entirely. (more…)