Some stare in amazement at their girth, while others marvel at the poor gas mileage. But why can't the once beloved Hummer find a new home? Maybe not as diverse as a purchase of Saturn or Saab, but Hummer is definitely a recognized brand. It is recognized worldwide, and what better way to enter the market than to be purchased by the Chinese conglomerate Tengzhong.
The, "Hey, look at me!", division of GM has been on the market for quite some time. And the Chinese, now on the forefront of the global market spotlight, may have environmental concerns with the purchase of Hummer. What? Seriously? Yes, indeed! The plan, which was penned in June of this year, allowed the industrial machinery company to enter a long-term assembly and supply agreement worth approximately $500M. What would this mean? To the US, more than 3,000 jobs would be secured. GM would benefit in progressing in its recent bankruptcy, while the Chinese market would benefit from the recent consumer demand for these vehicles. Additionally, the Chinese manufacturer can expand into other markets besides China, most notably India and the Middle East. But the sale that should have been completed by the third quarter of this year, may be put on hold until those environmental and taxation concerns are resolved.
It should be interesting to note that other deals with the Chinese have been in the works. Ford is seeking to sell off Volvo to Geely, the largest automaker in China. With global exposure and the finances to make it happen, the Chinese can enter the world market, let alone the US market sooner than had first been planned.
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