It's Official: GM Strikes Deal To Sell Hummer

Gm-hummer-560

After months of negotiations -- and rumors -- General Motors has officially reached an agreement to sell the Hummer brand to China’s Sichuan Tengzhong Heavy Industrial Machinery, according to Nick Richards, spokesman for Hummer. U.S. and Chinese regulatory agencies still need to approve the transaction, and government approval is expected by the end of this year or by early 2010.

"The investment from Tengzhong in Hummer will give the company the capital it needs to create new products and focus on the brand in a manner that it deserves,” Richards told PickupTrucks.com this morning. “We’ll be able to create new vehicles, like the Hummer HX Concept, that will help Hummer meet future environmental and regulatory standards as well as meet the demands and expectations of our customers.”

Tengzhong intends to hold an 80 percent stake in Hummer. Suolang Duoji, a private entrepreneur, will hold the remaining 20 percent stake.

Until the Hummer deal was announced, Tengzhong was a relatively unknown Chinese builder of commercial trucks and industrial machinery with no experience in consumer vehicle manufacturing.

Richards wouldn’t comment on the deal’s value, though recent rumors have said GM is selling Hummer for around $150 million.

It’s been reported that Tengzhong wants Hummer to eventually have a manufacturing plant in China and a dedicated dealer network there, which Hummer doesn’t have today.

According to a joint press release issued by GM and Tengzhong, "[Tengzhong] will acquire the ownership of the Hummer brand, trademark and tradenames, as well as specific IP license rights necessary for the manufacture of Hummer vehicles. The buyer will also assume the existing dealer agreements relating to Hummer's dealership network."

Hummer is expected to keep its headquarters and current manufacturing of the H2, H3 and H3T in the U.S., as well as its current management and engineering teams, including James Taylor, who will remain in his role as Hummer's CEO.

The transaction won’t include Hummer-related military technology or military truck production, which is currently managed by Mishawaka, Ind.-based AM General. GM acquired the rights from AM General to make Hummer trucks.

Comments

Does this mean the Hummer is a "foreign" truck now? Can't wait to see all the xenophobic rednecks line up against the truck that won the first Gulf War...

wy the new hunmer sell or down is not because is a big gas sucker not the h3,,mabe because some media and green wanabe,kill the hunmer the hunmer dont make a big diference on polution if we tacking about truck sell,they sold 10time more pickup or plus whit the same engine ..and you have car not better on fuel,,but nobody tack about it.and the only thing sell fast is the use hunmer it look they dont stay to long on the dealer ...

@nice truck

What the heck are you trying to say? you don't make sense!

I didn't know they made a H3T regular cab truck. Looks good!

The regular cab pictured is a concept vehicle that inspired the H3T production truck.

bon pour les anglais qui ne peuvent comprendre le français h3 est un camion qui n est pas dure sur le gaz,et pour temps on le juge pour les raison qu'il est un hummer,,,je me suis aperçus que cher les dealer il partais vite sur tous les usager..dite moi ci ses la faute au média et au green,que le h3 a de la difficulté

The H2 and the H3 didnt win the first gulf war and that is what is being sold.

And if you really want to split hairs that war was won with air power and not ground troops. Besides other than moving smoothly over the rutted terrain its not that great of an asset and has proven to be detrimental in conflict since Somalia.

@francais: gosh, man you think we ALL understood You?
To the Hummer: I'm skeptic - I can't connect good car with Chinese manufacturing quality...

Some people need to get their head out of their you know what. The truck that won the first Gulf War is not being sold. Only the crappy GM immitation version is being sold.

The military Hummer is an entirely different truck and made by a different company.

I agree with the first post . It should be interesting to see how people respond to this. The "America is best" pick-up crowd are going to have a major identity crisis. Hummer owned by the Chinese. Dodge Ram owned by the Italians. GMC's Duramax is Japanese (Mistsubishi). Toyota Tundra is made in Texas. I love it.

Lou, The Toyota Tundra is built in the US but is owned by the Japanese. How's the rust?

"The troubles with the Tundra only underscore Toyota’s perilous situation. The automaker spent $1.5 billion to build an all-new plant in San Antonio, Texas, to produce the truck, twice the original budget. But it’s running at a fraction of planned capacity. Indeed, slumping sales forced Toyota to put on hold what was to be the newest of its expanding production network in North America, a partially completed facility in Tupelo, Miss."

credit:Toyota's reputation takes a pounding
Massive recall is latest evidence that vaunted quality has slipped
http://www.msnbc.msn.com/id/33192916/ns/business-the_drivers_seat/

----

The Miss plant has been shut down. How long before the TX plant is forced to close?

@Lou,
GM will still build the H3 & H3T for the new owners till 2011 in their Shreveport, Louisiana plant.....with a 2012 option.

They are putting the headquarters in Michigan and are promising to produce the vehicles in the United States. They will be more of an American company than your Toyota Tundra.

It is interesting to see once an "American Icon" now is owned by the Chinese. Depends on how you see the selling...from the patriotic or economic point of view.

Them Chinos are going to make Hummers. That is a paradox now is'nt it? The Indians own Landrover and Jaguar and now Chinos own Hummer. The Chinese got Hummer free for 150 million meanwhile the Indians paid 2 Billion for Jaguar and Landrover. The Indians got the better deal still. As their brand has prestige. All the Chinos got was red neck brand. It the same way with Chino food, it is cheap greasy and bad for you. Indian food is more expensive, and red necks don't like it. Chino and Red necks are natural friends. The Chinos are their slaves and now they can make them Hummers.

@Alfanso: What does Chinos mean?...All I know is Amigos...lol...
Be clear, please don't use any confusing words...

Who cares if Hummer has gone to the Chinese? It was a fad that has gone horribly out of fashion, as it was all about image, and nothing else. People want usefulness to go with the tough image. Bling is way out now. Tundra may be made in Texas, it may look as tough as a Dodge Ram 2500.... so it will sell to Toyota fans, but us truck people know it's what is under the skin that counts. I think that's what the market is saying now. We want quality, durability and toughness, we don't just want it to look tough. Good riddance to Hummer.

The rusting frames were made in the USA.
For you "made in the USA" types here is Cars.Com top made in the USA vehicle list.
The Cars.com American-Made Index
By Kelsey Mays, Cars.com
What Are the Top American-Made Cars?
Cars.com's American-Made Index rates vehicles built and bought in the U.S. Factors include sales, where the car's parts are made and whether the car is assembled in the U.S. Models that have been discontinued are disqualified, as are those with a domestic-parts content rating below 75 percent.
Rank Make/Model U.S. Assembly Location* Last Rank

1. Toyota Camry** Georgetown, Ky.;
Lafayette, Ind. —
2. Ford F-150 Dearborn, Mich.;
Claycomo, Mo. 1
3. Chevrolet Malibu*** Kansas City, Kan. 3
4. Honda Odyssey Lincoln, Ala. 7
5. Chevrolet Silverado 1500*** Fort Wayne, Ind. 8
6. Toyota Sienna Princeton, Ind. 6
7. Toyota Tundra San Antonio 5
8. GMC Sierra 1500*** Fort Wayne, Ind. —
9. Ford Taurus Chicago —
10. Toyota Venza Georgetown, Ky. —

5 of the top 10 are Japanese.
Ford F150 is #2. Silverado #5, Toyota Tundra #7, Sierra #8.
There isn't a single Dodge in the top 10.

Whats more American? A toyota made in Texas from US parts in a US factory or a Dodge (Italian owned) made in Mexico ?

First, Fiat only owns 35% of Chrysler and the Ram 1500 is built in the US. They make the heavy duty in Mexico and that hurts their ratings. Tundra just shut down their plant in the US and has not plans to make a heavy duty.

What's more American a Ram headquartered in the US, designed in the US, 70% parts made in US/Canadao, and built and sells fairly well in the US?

Or a Toyota Tundra headquartered in Japan, designed in Japan, parts made in 80% parts made in US/Canada, doesn't sell very well in the US and what does sell the money goes back to Japan?

Lou,
Did you know the American Made index is not an index of American made. When they say US, they actually mean US and Canada? How can parts made in Canada be American?

They also do their percentages by value, not how much actual percent of the truck is "American/Canada" parts. The 20 percent of Toyota Camrys that are assembled in Japan, I'm told, can actually rate 75 percent US content, better than a US-assembled Dodge Ram, at 68 percent. But the majority of Camrys are assembled at US plants, with slightly higher domestic content by value, not percent, so the Ram gets knocked off.

@ Lou

actually, GM codeveloped the Duramax with Isuzu, still Japanese. :)

I hear chinese made cars which would meet US gov't crash ratings of 1 of 5 stars. Ya the hummer h2 (use images.google.com, wrecked hummer) could support that claim. They're not as tough as they look.

@ Lou
I cant understand how stupid some people are! Okay fine, maybe a toyota model is assembled in the US but where do you think the parts are made and all of the capital gain goes!!!
Look at the japanese writing all over the parts of the piece of crap toyota you probably have. Do some research for yourself instead of listening to people just as unknowledgeable as you!!!

Hows the rust.. well I have none.. and I live in north iowa where winter is hell on earth!.. Its only the 00-01 that have rust problems... and for the geek that said look at the jap words on all the parts!...guess what there are none! But the sticker on the inside of my door does say MADE IN USA. All the trucks out are good trucks! Knock off the bullshit! I mean wow

Oh and i aint finished yet... found this on a tundra message board!................. Hi guys. I've been a Ford guy all my life but just traded my 2001 F-150 for a 2007 Tundra DC with 13000 miles on it. It is an SR5 and has everything I wanted but step bars (those are coming tomorrow) - bench seat, sliding rear window, trailer hitch, bedliner. I wnet Toyota for two reasons - I love the new body style of the double cabs and my Ford rusted out like crazy. heres the link! http://www.tundratalk.net/forums/new-member-introductions/77274-ford-toyota.html

Now what where you saying about rust??? LOL

Oh I love Tacomas, love the rust! I love the car-like 5 lug wheels. I love how there is no frame behind the front fenders. I love the sexy interior. I love Tundra's welded frame more than Ford's hydroformed frame. I also love the frame flex on the Toyota.. that way you don't have to rely on the suspension so much. I love Toyota's long history of full size pickup trucks....
http://www.youtube.com/watch?v=zRfE_XAk2mE&ytsession=4mJVI6e6BC-krIukt3vLDG0AYA3wqTjyim3qRCrAFT_kmGSTX3msn83OfrwUQW-V-zNzOWI83970u7W06fA508Bxvum0dQ5qq89A-Dsm7HHtSj1toT3xopydKjqYLjnWMvIXIjDSf13zURvOWrusfOouvf21ljcFqACIdLwwesppK5274adb7L4D9TdfKka7kMU7Cki2OhHkZC50tkP6QDrIfJYPW8RINjF4olWwM2EysvxysuoDMnaseo2Pe78ZqQJ6oJuWIVnEXu3ST6GLUr1sEbCZYFhzhvlIj9-z9l_dA8JxR0S2yMXR0x22EoOZs0G3HfjjQcdLtqdOJJc6qGijL4gNwqdnvy_uuv41UXoN1nIE4rQZo0W995rLdmgeshJnV8Mm9BfVu_CHEpFMPkWRTuLxaP-rqapbDjelytHo36K03Cex3OFh_v_3WlBd

Wow you dumbass... number one, ALL TRUCKS AND CARS RUST! If there go through winter! New toyotas Dont rust any faster then anyother other car..... Frame isnt weak at all same type of frame that is on the FORD super duty! My Tundra handles a 450CT Case skid loader 9815 lb (4452 kg). plus the trailer with ease... up hills on crazy lake side lots! Can't say the same for my old 06 ford F 150... Dont get me wrong I like ford... but dont sit here staying all this bullshit about the tundra! its a great truck!...

If they go through winter***

I was agreeing with you, everything I said was about how much I love the Toyota. You are complaining. I wasn't being facetious, really I wasn't. :)
how did a Hummer thread get so off topic?

Wow Mike you were right - this thing BLEW UP. Good to know I can start a fracas...sad to know that good old myopic "Merican' made" misconceptions are alive and well. Question for all you people who say you won't buy a Tundra even though it's more American than the Ram or the Silverado (according to cars.com).

The computer you're using to type your anti-Japanese rhetoric - where was it made? HINT: It's not the USA.

What wonderful irony it is to be a xenophobe who uses a foreign-made computer to perpetuate a chronic lack of understanding.

Tundra Headquarters, what makes you think you can open the comments with an attack on who is not a fan of the Tundra, calling them Xenophobes, rednecks etc. What, so if I am not a fan of the Tundra, I am a friggen racist? You fool!
You can't just come up and say why the Tundra is a better truck (in a thread where this might even be relevant). You can't. You have no clue, that's why you have to stick to calling people racists just because they don't like your stupid truck. Oh and if I don't like the Tundra cos I think it's a POS, I have to hate my computer and everything that comes out of Japan, and every other Asian country around it?
People like to support American, not because they are xenophobic or racist, but because they want to support companies the in the country where they are, because the future of the country they reside in might depend on it.

Now, can you please stick to talking about trucks, and why you think one truck is superior to another (if you want to debate), or is that too hard, and you want to stick to personal attacks that are not even relevant or true?

Looks like I poked a stick into a hornet's nest. Why are people so brand loyal??? There was a study done that showed that men where way more emotional when it came to purchasing a vehicle than women. Seems to be confirmed by most of the comments on this blog..
We seem to forget the Ford pickups with the engineered holes in the frames or the crappy diesels (converted oldsmobile engines) that Chev was putting into their 1/2 tons. They've all produced crap at one time or another.
I don't own a Toyota pickup. Right now a Ford F150 is my first choice and Toyota second. I'm currently driving a GMC van. I won't buy a vehicle from a company that was bailed out with my (the people's) taxes.
I don't care where it's made as long as it's durable and I'll get my moneys worth.

Here is something from Cars.com on "actual" domestic parts content.
Which U.S.-Built Cars Have the Highest Domestic-Parts Content?
The American-Made Index rates cars built and bought in the U.S. Among our considerations are sales for each car, as they correlate to the number of U.S. autoworkers employed to build any given model and to build the parts that go into those same cars. If you're looking only at domestic-parts content ratings, build location and future status — i.e., cars that aren't facing imminent cancellation — here's what NHTSA lists as the top U.S.-built 2009 models:

Make/Model Domestic-parts content Assembly location
Ford Taurus 90 percent Chicago
Lincoln MKS 85 percent Chicago
Toyota Sienna 85 percent Princeton, Ind.
GMC Savana 1500 82 percent Wentzville, Mo.
Chevrolet Express 1500 82 percent Wentzville, Mo.
Buick Lucerne 81 percent Detroit
Chevrolet Malibu 80 percent Kansas City, Kan.
Honda Odyssey 80 percent Lincoln, Ala.
Toyota Avalon 80 percent Georgetown, Ky.
Toyota Tundra 80 percent San Antonio
Toyota Venza 80 percent Georgetown, Ky.

People say that if you buy a vehicle from a company based in the US the money stay there. All these companies are multinational. THey trade stocks on the open market. Anyone in the world can buy those stocks.

I must say it's been interesting to read every one's point of view. Don't you just love freedom of speech...

Yep, all the money made from the sale of a Japanese car here goes straight back to Japan. Those darn Japanese must pay no money for land to build their plants, pay nothing to build them, pay nothing to equip them, pay nothing to maintain them, and their workers must work for free. Here is a not so dirty little secret for all of you "all the money goes back to Japan" theorists. All the Japanese brands have US headquarters here too. Not just plants. Also *GASP* they make some models that are US specific and sold in no other market. A portion of the profit goes to the company. Far from all of it. Not much different from buying a Big 3 auto or truck. Oh wait, excuse me. The profits from those sales go to fill the pockets of greedy white collar types so I am told.

Pick your "poison".

I agree with the first post . It should be interesting to see how people respond to this. The "America is best" pick-up crowd are going to have a major identity crisis. Hummer owned by the Chinese. Dodge Ram owned by the Italians. GMC's Duramax is Japanese (Mistsubishi). Toyota Tundra is made in Texas. I love it.

Posted by: lou | Oct 9, 2009 5:23:20 PM

lOU, The Duramax is actually made by a company called Dmax Ltd in Moraine, Oh. Gm owns 60% share and the other 40is owned by Isuzu and Toyota.

Who cares if Hummer has gone to the Chinese? It was a fad that has gone horribly out of fashion, as it was all about image, and nothing else. People want usefulness to go with the tough image. Bling is way out now. Tundra may be made in Texas, it may look as tough as a Dodge Ram 2500.... so it will sell to Toyota fans, but us truck people know it's what is under the skin that counts. I think that's what the market is saying now. We want quality, durability and toughness, we don't just want it to look tough. Good riddance to Hummer.

Posted by: Alex | Oct 11, 2009 1:35:07 AM
Why would you compare the 2500 ram against the Toyota Tundra, a 1/2 ton vs 3/4 ton. Show me that a 1/2 ton Dodge, Ford or Chevy can compete with a Tundra. I'm tired of you self appointed so called " truck experts" brag about your big D3 trucks when the quality stinks and so does the resale value. NO I don't own a Tundra ( oddly enough because the front looks too much like a Dodge to me) but does it stroke your ego to say how great your D3 truck is? I love my truck, I love how it looks and it's more than capable of doing everything I ask of it.

Yep, all the money made from the sale of a Japanese car here goes straight back to Japan. Those darn Japanese must pay no money for land to build their plants, pay nothing to build them, pay nothing to equip them, pay nothing to maintain them, and their workers must work for free. Here is a not so dirty little secret for all of you "all the money goes back to Japan" theorists. All the Japanese brands have US headquarters here too. Not just plants. Also *GASP* they make some models that are US specific and sold in no other market. A portion of the profit goes to the company. Far from all of it. Not much different from buying a Big 3 auto or truck. Oh wait, excuse me. The profits from those sales go to fill the pockets of greedy white collar types so I am told.

Pick your "poison".

Posted by: Keith | Oct 13, 2009 10:19:19 AM

And last of all, Keith, WELL SAID!!

I'm still no closer to understanding the hatred towards Japanese pickups - especially Toyota. Xenophobia doesn't cover it. People seem to be able to accept Chinese ownership of Hummer and Italian ownership of Dodge. One of the posts was able to down play Isuzu involvement in the Duramax diesel. I haven't read any logical arguements against Toyota. The whole "buy American" thing doesn't make sense since Toyota Tundra was designed and built in the US with a higher domestic parts content of many of the Detroit 3. The only thing I can think of is the "Pearl Harbour" psyche. Trucks are a bastion of conservative ideology and heaven forbid the Japanese bomb this area of American domination.

What you guys fail to understand is The CHINESE (HELLLLLOOOOO COMMUNISTS). What happened to Obama's Big "Elkhart Project" to save jobs in this area?? Seems he is turning a blind eye to this so his buddies the Chinese can gear up for a march into Taiwan.

I may not have liked the Hummer, but if a man buy a car or truck that is big in order to compensate for a physical lack of size someplace else, than as pathetic as that situation might be, he should be free to do so. I see only Jock-Types in these cars. Of course everyone knows what steroids does to the male body.

Nanette



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