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Old 10-09-2009, 10:52 AM   #1 (permalink)
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Thumbs up Hummer sold!!!

GENERAL MOTORS AND TENGZHONG SIGN DEFINITIVE AGREEMENT FOR SALE OF HUMMER

DETROIT and SICHUAN, Oct. 9, 2009 – General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), today announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM’s premium all-terrain HUMMER brand.

Under the terms of the definitive agreement, the buyer 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.

Tengzhong intends to purchase HUMMER through an investment entity, in which it will hold an 80 percent stake. Mr. Suolang Duoji, a private entrepreneur with holdings that include thenardite producer Lumena, will hold the remaining 20 percent stake. Financial terms of the agreement were not disclosed.

The transaction is subject to customary closing conditions and regulatory approvals and/or review by agencies in the U.S. and China. The completion of the definitive agreement enables the companies to continue and further the overall regulatory review process.

“HUMMER is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and HUMMER,” said Fritz Henderson, GM President and CEO. “For HUMMER, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future.”

Under the agreement, HUMMER would contract vehicle manufacturing, key components and business services from GM during a defined transitional time period. For example, GM’s Shreveport assembly plant would continue to contract assemble the H3 and H3T and AM General’s Mishawaka assembly plant will continue to assemble the H2. Both facilities will produce the specified vehicles until June 2011, with an optional one year extension until June 2012. The deal is expected to secure more than 3,000 jobs in the U.S. related to the sale and manufacturing of HUMMER vehicles.

HUMMER will continue to be managed by members of its existing leadership team including James Taylor, who will remain in his current role as HUMMER’s chief executive officer. Prior to joining HUMMER, Taylor was General Manager of Cadillac where he oversaw a reinvigoration of the brand, leading key innovations in design and technology as well as the development of new models.

“We are fortunate to have a partner who understands and recognizes the importance of continuing investment in HUMMER’s heritage as a U.S.-based and branded company with a view toward capitalizing on global opportunities,” said Taylor. “Backed by a privately owned and well-capitalized company, we are going to be able to focus on providing customers with more efficient models that deliver HUMMER’s promise of authentic, purpose-built design and engineering.”

Once the transaction is complete, HUMMER will become the first automaker to offer an alternative fuel powertrain in every model, with the addition of E85 FlexFuel capability in the 2010 H3 and H3T. HUMMER is also in the process of obtaining emissions certification for a diesel H3 that will be introduced in markets outside of North America. The brand’s future product development will focus on improving efficiency and performance in current HUMMER models with alternative fuel powertrains, more efficient gas engines, 6-speed transmissions and diesel engines. “This transaction marks an exciting step for both Tengzhong and HUMMER, as we invest in a business that has significant opportunity in the U.S. and around the globe,” said Yang Yi, CEO of Tengzhong. “We are excited about some of the initiatives already underway at HUMMER that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel-efficient vehicles to meet not only future regulations but also customer expectations.”

Credit Suisse is acting as exclusive financial advisor and Shearman & Sterling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.

For more information on the agreement go to www.transactioninfo.com/tengzhong.

About GM

About General Motors: General Motors, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 219,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Company acquired operations from General Motors Corporation on July 10, 2009, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation. More information on the new General Motors Company can be found at www.gm.com.

About The Buyer

The investment entity buying Hummer will be jointly owned by Tengzhong and private entrepreneur Suolang Duoji. Tengzhong will hold 80 percent of the entity and Mr. Suolang 20 percent.

Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. (“Tengzhong”) is one of China’s major privately owned engineering companies. Tengzhong is a manufacturer of heavy machinery equipment with a presence in special-use vehicles, road and bridge construction equipment and construction and energy industry equipment.

Since its establishment, Tengzhong has quickly become a major manufacturer of machinery and construction components through a series of successful acquisitions. Tengzhong prides itself on its automated manufacturing equipment, its processing systems, significant research and development initiatives and commitment to innovation.

Mr. Suolang Duoji, a private entrepreneur from Sichuan Province has holdings that include thenardite producer Lumena which was recently listed on the Hong Kong Stock Exchange.

Last edited by boom harvey; 10-09-2009 at 10:55 AM.
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Old 10-09-2009, 11:24 AM   #2 (permalink)
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as soon as i saw this headline i came over here to see what the hummers guys have to say. i guess i'm early.

is a chinese hummer better than no hummer at all?
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Old 10-09-2009, 12:51 PM   #3 (permalink)
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I'm so happy for all my Hummer Friends that worked so hard to pull this off. Thanks for all your hard work.

Now lets build the H4....
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Old 10-09-2009, 01:27 PM   #4 (permalink)
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is a chinese hummer better than no hummer at all?
Yes, it' keeps about 2000-3000 US Jobs here.

Hummer will still be designed and built here in America, it's just the final income goes to a holding company overseas.

I expected the Russians to buy it, but I think many buyers who lined up changed their mind when they realized that AM General and the Hmmwv/H1/military side of the deal had nothing to do with the Hummer brand/sale.
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Old 10-09-2009, 03:38 PM   #5 (permalink)
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is a chinese hummer better than no hummer at all?
If American workers are keeping their jobs and the "new" HUMMER plans on producing the vehicles that were in the pipeline, then yes. With the mgmt, design, and manufacturing remaining in the US, I'm cautiously optimistic. Time will tell obviously.

I'm really hoping to see an H4/HX and a two door H3T hit the market - the sooner the better.
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Old 11-11-2009, 03:17 PM   #6 (permalink)
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Although the Hummer sale isn't officially official which is to say, the Chinese authorities haven't told Tengzhong "Proceed!" it is official enough that GM has restarted production of the 2010 H3 and H3T at its Shreveport, LA plant. General Motors didn't want to be stuck with dead models, so it closed the Hummer spigot while its side of the deal with Tengzhong was finalized. By the beginning of this month, though, the bottom of the inventory barrel was starting to peek through, with just 1,183 units on hand.

Even though Hummer sales are down more than 50 percent, nevertheless people are still buying, and the company's two H3 models are obviously the most popular. According to Automotive News, a Hummer spokesman reports that the 2010s should be arriving in dealerships in December and as we reported earlier, you may even find them in two new colors and with biofuel capability.


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Old 11-11-2009, 03:29 PM   #7 (permalink)
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Any news about H2 sales or On Hand on the H2 model?
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Old 11-12-2009, 06:40 AM   #8 (permalink)
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Less then 1200 (2009) HUMMERS in inventory currently
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Old 11-12-2009, 07:52 AM   #9 (permalink)
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Less then 1200 (2009) HUMMERS in inventory currently
no wonder sales are down
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Old 01-06-2010, 04:10 PM   #10 (permalink)
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http://news.yahoo.com/s/ap/20100106/...us_gm_whitacre

Whitacre also said he is not optimistic for a deal to sell its Swedish Saab brand, but he expects the sale of Hummer to a Chinese heavy equipment maker to close on Jan. 31. GM is phasing out Saab and expects to start closing plants this week.
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Old 01-07-2010, 08:21 AM   #11 (permalink)
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To: Hummer Dealers

From: Jim Taylor

Date: January 6, 2009

Subject: Hummer Deal Update

Happy New Year to you and your Hummer teams! I wanted to take a few moments for a quick update regarding our ongoing process to obtain Chinese government approval for the sale of the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd.

As you know, the deal documents were signed October 9, 2009 between GM and Tengzhong. This was a very important milestone as the terms of the deal were finalized and agreed upon. From that date, application to both governments was made to obtain the appropriate reviews and approvals. The U.S. government has approved the deal, and the Chinese government process has been and is still under way. In addition to the efforts of Tengzhong in supporting the application progress, GM has been very supportive by providing pro-active assistance in China to make sure the Chinese government authorities have all the information in order to reach their conclusion. While we have been expecting to hear their decision since early December, we are still awaiting the Chinese government process to conclude.

Also, based on the efforts of Tengzhong and with the GM support mentioned above, we do expect to be advised of definitive status within the next two weeks. The Tengzhong leadership team is very optimistic for a positive outcome and continues to be engaged in preparing Hummer LLC for its new future, which includes providing us with the resources we need to continue operating and prepare for the beginning of our new company.

We will continue to keep you advised as the process continues.

All the best for a Happy New Year and I look forward to the excitement as well as the challenges for 2010.


James Taylor
CEO
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Old 02-01-2010, 07:24 AM   #12 (permalink)
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http://news.yahoo.com/s/afp/20100201...estgmtengzhong

Sunday, January 31, 2010 9:06 PM
Subject: IMPORTANT MESSAGE FROM JIM TAYLOR, HUMMER CEO



I am pleased to report that GM and Tengzhong agreed today to extend the purchase opportunity for Hummer beyond January 31. While the transaction approvals have not progressed as fast as we all had hoped, both parties are still very much in support of this transaction coming to a successful completion.

I will exchange more details as the month progresses.

I heard throught the rumor mill that the Chinese govt is holding this up and that the guy buying it is a citizen of Hong Kong and may just run this purchase through HK because they are more business friendly.

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Old 02-01-2010, 01:34 PM   #13 (permalink)
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why did no one here in America buy Hummer? Evidnently Hummer is seen as a profiatable company, and with all of the talk these days of security for America and Obama financing bailouts, one would think that a deal could have been made to keep the much needed profits here in America instead of sending it overseas. We are doing too much of that as it is. I'm sure more jobs could have been 'created' or 'saved' if all of the Hummer business was in control here. At the very least that would mean more tax revenue for the Feds.
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Old 02-01-2010, 09:42 PM   #14 (permalink)
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why did no one here in America buy Hummer? Evidnently Hummer is seen as a profiatable company, and with all of the talk these days of security for America and Obama financing bailouts, one would think that a deal could have been made to keep the much needed profits here in America instead of sending it overseas. We are doing too much of that as it is. I'm sure more jobs could have been 'created' or 'saved' if all of the Hummer business was in control here. At the very least that would mean more tax revenue for the Feds.
There were other buyers looking at Hummer, GM decides who to sell to, and it's probably in their interest to sell to a Chinese firm. GM wants to make more inroads into the Chinese marketplace [ie. Buick is big there], so to give a sweetheart deal to sell a high profile US iconic brand to a chinese firm may give them brownie points for other deals.

That's my guess, who knows.. it's GM.
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Old 02-02-2010, 07:57 AM   #15 (permalink)
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if Hummer is so "profitable" then why sell it? Doesn't GM need that money to pay back the billions in bailouts?
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Old 02-02-2010, 04:22 PM   #16 (permalink)
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after hummer strayed from the hi...the alpha being the best combo they had....they lost the edge on the market.

hummers have always been overpriced and and overrated.....
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