Tengzhong's Hummer deal outline disclosed

[Bebe]

Tengzhong's Hummer deal outline disclosed

Shanghai, August 26 (Gasgoo.com)

General Motors might sign an agreement for sale of its Hummer brand to China's Sichuan Tengzhong Heavy Industrial Machinery later this week, media said yesterday, and the outline of the deal is disclosed online.

Executives from prospective buyer Tengzhong were expected to arrive in Detroit earlier this week for further discussions with GM, said insiders. An agreement could be signed and announced during the trip, according to Bloomberg News.

Since early June, when GM reached a memo of understanding with Tengzhong for the sale of the Hummer brand, the parties have been in frequent talks to finalize a definitive agreement, GM said. The deal is subject to U.S. and Chinese regulatory approval before it takes effect.

Sichuan Tengzhong has stated publicly that it intends to purchase the Hummer brand, but will not manufacture Hummer vehicles in China or acquire Hummer's assets or a stake in parent company General Motors.

Major Chinese news portal 163.com said today that its exclusive sources have disclosed the outline or so-called "core contents" of GM-Tengzhong's Hummer deal as follows:

1. Tengzhong will buy the intellectual property rights, including the trademark, patent right and other contents of Hummer;

2. Tengzhong will take over the sales network of Hummer;

3. After the acquisition, Tengzhong will operate the Hummer's business via an offshore company;

4. Before 2012, Hummer vehicles will continue to be manufactured by GM, who will also provide all-around technical services;

5. Before 2012, Tengzhong will launch the new H3 and new H4 (CUV models);

6. The [Hummer] marketing maintenance and R&D (research and development) will not be stopped.

Great news!!!

[hmcoleap]

Wish this "report" included something on the fate of H1 parts/repairs in the future; e.g. parts availability, whether or not rigid "through dealership only" contracts will dissolve and allow purchasing direct from AM General, etc...

Originally Posted by Bebe

Tengzhong's Hummer deal outline disclosed

Great news!!!

[Bebe]

I feel your pain Manny, problem is AM General's stake in HUMMER (H1's) is not included in this deal at all, so I don't know if you will get any help.

I am surprised that this can't be resolved through AM General and GM, but it may have more to do with the discontinuation of the H1 than the sale of Hummer.

I know I'm stating the obvious, but...just in case

Also, the H1 has only been discontinued for 2-3 model years now, so I'm surprised that parts are such an issue, unless it is for the same reason I can't get bushings, engine mounts and other critical parts for my H3, which is that the suppliers are going out of business or scaling back production on a huge level because of the economic downturn in the Auto Industry.

[BigKofJustice]

From what I heard on the HML [according to the Hummer clubs newsletter] and some misc sources, it seems that the H1 resides with AM General corporation and not Hummer.

Parts will still be available from AM general as long as they are making HMMWV's. H1 parts is still profitable for AM General.

[stjames151]

Wooohooo! H4!

[LOGANSTANFORTH]

Originally Posted by BigKofJustice

From what I heard on the HML [according to the Hummer clubs newsletter] and some misc sources, it seems that the H1 resides with AM General corporation and not Hummer.

Parts will still be available from AM general as long as they are making HMMWV's. H1 parts is still profitable for AM General.

With all the parts we are constantly replacing over here in the sand box, there will always be PLENTY of replacements for the H1, and then there will always be government auction sites, you can get the stuff for pennies on the dollar.......

[hmcoleap]

I don't doubt that; my questions are more about the channels through which the parts will be available; e.g. will it still be restricted so that HUMMER H1 parts will be purchasable only through HUMMER Dealers, or service shops be able to purchase parts directly from AM General (right now, the GM contract prohibits that, even though these GM dealerships have no interest or knowledge about the H1)

Originally Posted by LOGANSTANFORTH

With all the parts we are constantly replacing over here in the sand box, there will always be PLENTY of replacements for the H1, and then there will always be government auction sites, you can get the stuff for pennies on the dollar.......

[BigKofJustice]

Originally Posted by hmcoleap

I don't doubt that; my questions are more about the channels through which the parts will be available; e.g. will it still be restricted so that HUMMER H1 parts will be purchasable only through HUMMER Dealers, or service shops be able to purchase parts directly from AM General (right now, the GM contract prohibits that, even though these GM dealerships have no interest or knowledge about the H1)

Non GM partners already have parts/service contracts with AM General.

Predator Motorsports, Blue Hummer, Rubber Duck, Southern Axle Express, gomge.com, and others.

You don't have to go to a dealer to get H1 parts.

My guess is AM General is picky about whom they give contracts.

They won't give it to every tom dick and harry out there. If you have some form of H1 business that's established in the Hummer community, their ears would be open.

[hmcoleap]

Sorry BigKofJustice, but that is flat out not true.
Where do you get your information?

H1Motorsport (Yours Truly), Rubberduck4x4 (Travis D.), BlueHummer (Dave B.), SAX-Express (Scot S.): I know the guys behind all of those companies quite well, and I know where they are getting their parts from; they are ALL working through GM/HUMMER Dealership Parts Managers, not getting parts from AM General directly.

I have spoken at length with contacts at AM General, and their hands are tied by the contract with GM. How terms of the new contract may or may not change things are not clear, because details of the new contract and how the relationship with AM General fits in are not being released.

Originally Posted by BigKofJustice

Non GM partners already have parts/service contracts with AM General.

Predator Motorsports, Blue Hummer, Rubber Duck, Southern Axle Express, gomge.com, and others.

You don't have to go to a dealer to get H1 parts.

My guess is AM General is picky about whom they give contracts.

They won't give it to every tom dick and harry out there. If you have some form of H1 business that's established in the Hummer community, their ears would be open.

[jerseymike68]

feeling your pain really!

[BigKofJustice]

Originally Posted by hmcoleap

Sorry BigKofJustice, but that is flat out not true. Where do you get your information?

Check your pm.

(PS. I was probably lied to by another vendor so my assumption was incorrect)

[boom harvey]

Got this e-mail this morning. Looks like change is on the horizon.

Hey bebe, where are the pics from your trip?




Sent: Wednesday, September 23, 2009 8:56 AM
Subject: Future Communications Regarding the Sale of HUMMER



Hello everyone,

This is a test to ensure we have the appropriate email addresses for future critical communications of the owner and/or general manager and HUMMER manager of your dealership.

Please respond to confirm we have the correct emails or provide correct information. Feel free to include your executive assistant's email, too.

Thank you for your assistance.


Judy A.
Office of the CEO
HUMMER
100 Renaissance Center

Detroit, MI 48265
313-667-XXXX (office)
586-489-XXXX (cell)
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.

Confidentiality Note: This message is intended only for the person or entity to which it is addressed. It may contain confidential and/or privileged material. Any review, transmission, dissemination or other use, or taking of any action in reliance upon this message by persons or entities other than the intended recipient is prohibited and may be unlawful. If you received this message in error, please contact the sender and delete it from your computer.

[Bebe]

Originally Posted by boom harvey

Hey bebe, where are the pics from your trip?

Which one? LOL

[boom harvey]

Baja with the boys, and any other pics you want to post of playing.

[boom harvey]

http://www.autoblog.com/
With General Motors selling its Hummer operations to China's Tengzhong, there had been some concern that the embattled state of Michigan would lose even more jobs if the SUV brand's home base would move either overseas or out of state. But according to Reuters, that doesn't look like it's going to happen. According to company officials, Hummer LLC has secured some $20.6 million worth of state tax credits over ten years, and in turn, it expects to invest $9.4 million over five years into its new headquarters.

Reuters indicates that Hummer operations will be relocated to a location in southeast Michigan, with plans to start at 100 employees and eventually ramp upwards to 300 in a few years. A site for the headquarters has not been announced yet, but it will likely come after the deal between GM and Tengzhong are finalized.

[Bebe]

Originally Posted by boom harvey

Baja with the boys, and any other pics you want to post of playing.

November 16th-20th....haven't left yet

Looks like we won't know about the team for sure until after the 29th, so prep will be last minute...sorta.

But I'm going regardless

[Bebe]

There is a Black Sheep week in Moab from OCT 3-11, I won't be able to go, but I will post pics

[Shadow man]

Originally Posted by Bebe

There is a Black Sheep week in Moab from OCT 3-11, I won't be able to go, but I will post pics

I'll be there and keep an eye out for them. Do you know if they plan to run Pritchett or other somewhat harder trails?

[Bebe]

Originally Posted by Shadow man

I'll be there and keep an eye out for them. Do you know if they plan to run Pritchett or other somewhat harder trails?

I'm not sure. They usually decide every morning what trail they are going to run. Look for a guy in a White 2 door H-1, his name is Neo. They all hang out on the south side of town at his place. If you want to hook up with them, send me a PM and I'll get you the info.

[Shadow man]

Originally Posted by Bebe

I'm not sure. They usually decide every morning what trail they are going to run. Look for a guy in a White 2 door H-1, his name is Neo. They all hang out on the south side of town at his place. If you want to hook up with them, send me a PM and I'll get you the info.

I'll talk to them there in Moab if I see them. I would enjoy watching them wheel. I think it was them I seen last year up on Gold Bar. One H1 had a broken rear and they didn't look very happy, so I didn't stop to chit chat with them.

[ron b]

Pritchett is tough on h1's (even worse on the 2 and 3's). I bet that one is not in the cards for the group.