Chinese netizens comment on Sichuan’s Hummer purchase.
The big news of the day is of course, Sichuan Tengzhong Heavy Industrial Machinery Company’s purchase of Hummer from GM. The New York Times were the first to break the story, but GM soon released a press release which confirmed earlier reports. The Chinese automotive press were naturally all over the story, and Chinese netizens were busily commenting on the story all day which CCT has summarised below.
Sichuan Tengzhong have reportedly already put down a 100 million USD deposit on the Hummer brand, and the deal will be reportedly complete by September 2009, making the iconic American brand a wholly owned Chinese company.
Sichuan Tengzhong’s plans for Hummer are not immediatly clear, they do plan to keep the Hummer factories in place in the USA, and with 3000 workers in place.
Chinese netizens were very vocal in their comments on the story, here are some from the Auto.Sohu channel:
If its for technology, then 1 billion is worth it, if its for the brand, then its their loss
Oh! Really sad! Why are other countries brands worth so much? Why do Chinese people like to buy in foreign goods? Look at history, which Chinese brands were successful?
This deal will most certainly loose money
Hummer branding maybe worth 1 billion, but can it be made it back?
What are you doing buying rubbish? Sichuan people have too much money
The king of oil consumption, not on the same level as Great Wall Motors though
When are we going to buy Boeing?
Just doing big business, but wont make big money
Nobody has ever heard of Sichuan Teng Zhong brand, never mind the Hummer brand. In one bite they have become a fat man, I strongly support our national enterprises opening new boundaries. Could it be said that we’ve found yet another area of economic devleopment?
What does China lack the most? Its not technology, its branding. Technology needs one generation, craftwork takes three generations, but branding takes generations of history to build.
This is great, they [Hummers] will soon be made in China.
So we’ve sent more money to the USA?
So much money, why didnt they just make their own brand?
So it seems that just from this small sample of comments that Chinese netizens aren’t really behind Sichuan Tengzhong buying Hummer.
yeah, but most of these netizens dont seem to know jack about the Chinese auto industry.
I think it’s a terrible idea. I highly doubt this company has the resources to develop and support a money-losing brand. Not only that, Hummer vehicles are too large to be sold on Europe, Japan, or even China. After import taxes and gas-guzzeler taxes, those cars will cost in excess of $100,000. Far more than most Chinese can afford. Hummer will drag this company into almost sure bankruptcy.
I thinks it’s a terrible idea as well. Unless there is a significant transfer of technology, the deal is worthless. The brand itself is not worth much in my opinion.
They will also lose their US market share. Many of the people who drive Hummers in the US are right-wing, conservative people, who would not buy Hummers if it’s a “foreign” company.
Sichuan Tengzhong does get IPR to Hummer H2 and H3, so I have no doubt in Chinese ability to turn out exact replicas in one year, to be distributed by Sichuan as Hummers in the US.
Perhaps Hummer will get tossed around like Land Rover did back in the day, with different manufacturers getting dibs on its tech, like many suspected BMW did in order to develop the X5. I suppose the smart ones should wait until they can pick Hummer up as a divesture/asset sale once Hummer has sucked Tengzhong dry.
It’s a niche vehicle that won’t just go away. This will set a good precedent for Chinese manufacturing on U.S. soil. Good for both countries. Another giant step for globalism.
You really need to look beyond it being a brand that isn’t doing well. No one said they were locked into making huge SUVs that get bad gas mileage. It is still a well known brand that could be turned into something else. Not to mention Hummer does have plenty of technology to go with it that could still be used in smaller more fuel efficient SUVs.
I am a HUMMER fanatic and this company is bringing to the table what HUMMER really needs which is funding. In addition to that they have plans to make HUMMER vehicles more fuel efficient and more cost effective to produce not to mention it is saving over 3000 U.S. jobs. All I have to sell is hell let em have at it and burn their money because during the process they will have improved HUMMER by leaps and bounds and made it a more tree hugger and normal person friendly car company without losing its footing as a niche market and extreme offroad vehicle manufacturer.
I don’t know enough about Tengzhong to make a comment on their finances or ability to make use of Hummer, I really doubt few do
Id like to see Hummer become the ‘American Subaru’ i.e. AWD cars, wagons, etc that dont cost the earth, but have awesome performance.
Id love a H3, but the Chinese price I saw was 690,000rmb – far from what I could afford. But in the USA Hummers are actually quite cheap for what you get, when say compared to a vehicle with similar capabilities from stables like Landrover. With cheaper R&D in China, but cheap factories in the USA, they could easily become a world leader in AWD tech.
I hope that Tengzhong will invest more money in the Hummer brand and improving the brand more by bringing in more fuel efficient SUV’s and maybe pickup trucks in the future….
Hummer being maker of AWD cars??That would be a great idea..
Are they going to put a 2.4L Mitsubishi engine in the new H3?
Regarding this comment by CCT:
“With cheaper R&D in China, but cheap factories in the USA, they could easily become a world leader in AWD tech.”
I don’t think there are any “cheap factories” in the USA.
Hummer factory employees are all UAW union members. I don’t think the new owners have much experience dealing with labor unions, which don’t really exist in China.
Also, if the purchase is for the Hummer brand, it would be an uphill battle to leverage this brand while trying to reinvent it (CCT’s comment: American Subaru’ i.e. AWD cars, wagons, etc that dont cost the earth, but have awesome performance.)
I wish Sichuan Tengzhong Heavy Industrial Machinery Co and Hummer the best, but I don’t think it will be easy.
Cheap land in the USA makes opening factories rather cheap, infracstructure is abundent when compared to the PRC. Try opening a car factory in China, it’s a very expensive business.
American workers will be a massive commitment to take on, especially as they are, as you say, UAW workers. Hopefully Tengzhong will just give them the cash and tell them to get on with it.
Secretley, every man wants a Hummer, make a Hummer AWD ‘regular sized’ vehicle, i.e. wagons, and people will be queueing upto buy them.
Speaking from experience. I have opened a factory in the U.S. and in China. China is must less expensive to open a factory. It really is not even close from my experience. It isn’t just cheape labor that has brought so much manufacturing to China.
I think by Nature ( AWD ) …Hummer should be in China .
1. The world most stringent & scenic landscape
2. The new emerging market
3. The world plentist $$ reserve
4. Cheap Labor & Great Product..
5. The innovative Chinese .. dont surprise that to see a Hummer with huge LPG tank in China .
RZ Technologies will not sell to Chinese Industrial Co. at this time.