Chinese co buys Hummer!

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Whilst other Chinese car co’s were busy chasing Volvo, SAAB, and ex Chrysler technology, a plucky little company based in China’s western provinces has purchased Hummer from GM, at least according to the New York Times. The company, Sichuan Tengzhong Heavy Industrial Machinery Company based in Chengdu is a privately owned company, and a major manufacturer of road building equipment, and bridge building supplies. Their website is based here, however, there is currently no English version, there is also no announcement of their Hummer purchase.

The New York Times has this report:

GUANGZHOU, China — General Motors has reached a preliminary agreement for the sale of its Hummer brand of large sport utility vehicles and pickup trucks to a machinery company in western China with ambitions to become a carmaker.
The Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., based in Chengdu, concluded the agreement with G.M., which announced the deal Tuesday morning but did not confirm the identity of the buyer until Tuesday evening in Detroit.

Sichuan Tengzhong is a privately owned company, but Tuesday’s deal required preliminary vetting by Beijing officials, who retain the right to veto any effort at an overseas acquisition by a Chinese company and who give special attention to deals over $100 million.

G.M. said that the memorandum of understanding would not allow it to reveal the price. Industry analysts have estimated that the Hummer division would sell for less than $500 million.

Sichuan Tengzhong is known in China for making a wide range of road equipment, from bridge piers to highway construction and maintenance machinery. But even before the Hummer deal, the company has been moving more into heavy-duty trucks, including tow trucks and oil tankers.

G.M. said that the deal would save about 3,000 jobs in the United States, including those at its 153 domestic dealerships, and that Hummer would remain based in the United States.

“Over all, we’re pretty pleased,” said a spokesman for Hummer, Nick Richards, before the buyer was officially identified. “If you think about the qualities we’d want in a new owner for the brand, this buyer really met all the criteria. They’ve got a proven track record in international business, and they’ve got a long-term vision for the brand. They’ve got the capital to invest in more efficient vehicles, which is what’s necessary to grow the brand.”

Whilst this is all very interesting, and the first succesful take over of an American car company, especially one as iconic as Hummer, we wonder if a Chinese takeover will dent its flag waving, patriotic brand in the USA? And when can we buy a Hummer H3 for sensible money in the PRC?