General Motor to close HUMMER as Chinese deal falls through. Again
One adage that is well in the front of the minds of executives at General Motors is, “Don’t count your chickens before they hatch.” The lesson has become all to clear. General Motors thought it had a buyer for Saturn only to see the deal fall through. The Saab deal was on and off, on and off until a Dutch company named Spyker finally stepped forward and submitted a bid that GM could accept. And GM probably thought that it had its Hummer brand sold to Sichuan Tengzhong Heavy Industrial Machinery of China. Now sources are saying that the Chinese Ministry of Commerce has rejected the deal. Why? The Ministry asserts that it never did receive a former application from Tengzhong to purchase Hummer. The Ministry has to give approval to all mergers and acquisitions that take place with a Chinese company involved. However, there are reports that Tengzhong and General Motors were still looking at alternatives. Until then, though, GM has begun dismantling the brand. DETROIT – General Motors announced that Sichuan Tengzhong Heavy Industrial Machines *** Ltd. (Tengzhong) was unable to complete the acquisition of HUMMER. As a result, GM will begin the orderly wind-down of the HUMMER operations. “One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed," said John Smith GM vice president of corporate planning and alliances. "GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner." GM will continue to honor HUMMER warranties, while providing service support and spare parts to current HUMMER owners around the world. Press release via General Motors/HUMMER
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