Changfeng have reportedly abandoned any notion of buying the stricken Hummer brand from GM, although GM have also denied they have solicited bids for the Hummer brand.
A Changfeng insider close to the dealings expressed that Changfeng and GM were in base talks to offload Hummer to the Chinese, Changfeng executives were reported to have visited the Hummer production facilities, but found the Hummers gasoline consumption to be ‘too high’ and though it would be too difficult to open any kind of market for the Hummer in China.
However, Changfeng and Hummer may have to a deal earlier this year to supply chassis, in return Hummer will help Changfeng enter the US marketplace, Changfeng will also help Hummer enter the Chinese marketplace, possibly via Changfeng dealerships rather than the current gray market Hummer imports.
With the tax on big imported vehicles about to rise, the Hummer brand as an imported vehicle may well becoming to an abrupt end. An imported SUV that costs 1 million RMB now, may well cost 1.3 million RMB once the tax takes affect on Sept 1st 2008.
Hummer is the quint essential American brand, its percieved as being big and strong, but would a Chinese owner be able to carry on with that mantra? Perhaps the best deal for GM would be to procure smaller Chinese SUV’s and turn the Hummer brand into an economical SUV brand.