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Title: G.M. to Close Hummer After Sale Collapses
Source:
[None]
URL Source: http://www.nytimes.com/2010/02/25/business/25hummer.html?hp
Published: Feb 24, 2010
Author: NICK BUNKLEY
Post Date: 2010-02-24 19:02:35 by Skip Intro
Keywords: None
Views: 1746
Comments: 29
G.M. to Close Hummer After Sale Collapses DETROIT — General Motors said Wednesday that it would shut down Hummer, the brand of big sport-utility vehicles that became synonymous with the term “gas guzzler,” after a deal to sell it to a Chinese manufacturer fell apart. The buyer, Sichuan Tengzhong Heavy Industrial Machines, said in a statement that it withdrew its bid because it was unable to get approval from the Chinese government, which is trying to put a new emphasis on limiting China’s dependence on imported oil and protecting the environment. In addition, people close to the negotiations had said that the biggest obstacle to emerge in the last few days was not regulatory approval, but rather bank financing. While Tengzhong has the cash to pay for the Hummer brand, it needed bank financing to operate the division, redesign vehicles and set up new production plants in China. A spokesman for Hummer, Nick Richards, said G.M. had no specific timetable for completing the wind down, but left open the possibility that G.M. would be open to new bids. “We just reached this decision today so we’re just beginning the process,” Mr. Richards said. “Typically winding down a brand can take several months. If there are viable alternatives for part of the brand or all of the brand during the process we’ll consider them.” G.M. had been trying to sell Hummer for nearly two years, and struck a preliminary deal with Tengzhong last June. The two companies had planned to close the $150 million deal by the end of January, then delayed the deadline by a month in the hopes of getting the green light from China. “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,” John Smith, G.M.’s vice president for corporate planning and alliances, said in a statement. “G.M. will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner.” It was the third time since G.M. emerged from bankruptcy protection last year that a deal to sell one of its unwanted brands collapsed. The company is shutting down Saturn, and it began to halt operations at Saab after an agreement with Koenigsegg in Sweden was called off. G.M. later reached an agreement with a Dutch company, Spyker Cars; that deal closed Tuesday. G.M. also is closing Pontiac, but it never tried to sell that brand. The carmaker is focusing on its Buick, Cadillac, Chevrolet and GMC brands as it works to recover from bankruptcy. G.M. said it still would honor Hummer warranties and provide service and parts to Hummer owners worldwide. Hummer has nearly 400 dealerships globally, including 153 in the United States. The announcement was celebrated by environmentalists, who have long pressed G.M. to simply kill the brand, which was born from military Humvees in 1992. G.M. acquired it in 1998. “Closing Hummer simultaneously improves the health of G.M., China and the planet,” said Daniel Becker, director of the Safe Climate Campaign at the Center for Auto Safety in Washington. “Hummer should rest in pieces.” About 3,000 jobs in the United States could be affected by the shutdown, including positions at G.M. and the brand’s dealerships. A factory in Shreveport, La., that builds the Hummer H3 and H3T and other G.M. trucks already was scheduled to close by 2012. The larger H2 was built for G.M. by A. M. General in Mishawaka, Ind., until December, when production was temporarily halted to allow for the sale process to conclude. The deal would have made Tengzhong the first Chinese company to sell vehicles in North America, though it planned to keep Hummer’s operations in the United States. “Tengzhong worked earnestly to achieve an acquisition that it believed to be a tremendous opportunity to acquire a global brand at an attractive price,” Tengzhong said in its statement. “The renewed investment to be made by Tengzhong and other investors would have provided Hummer’s existing management team the ability to build greener utility vehicles that would have been attractive and useful in new markets such as China as well as the existing core markets.” Mr. Richards said Hummer dealers in the United States have about 2,500 vehicles in their inventories. In January, the brand made just 265 sales in the United States. Hummer sales plunged 67 percent in 2009, to a total of 9,046.
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#1. To: Badeye (#0)
Here's your big chance to save your brand and show those Chinese how dumb they are.
" Here on LP, the proof is the accusing poster's responsibility. We don't do anyone's homework for them. (And shouldn't be cajoled into doing it.) Goldi-Lox posted on 2010-02-21"
Maybe had Boof been not so busy GIVING himself one he could have bought one instead...
Day 4 of Packrat refusing to register here. Day 2 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
Damn shame, they remain outstanding vehicles. My H3 is getting 21 mph these days.
my anti groupie can't get through life without me.
I just read today that they're still looking for a buyer. Someone could probably pick up the whole division dirt cheap.
And your Crown Royal .16... [snicker] EPA Rating H3 Local 16 Highway 19...but Boofer gets 21 because he's....special...
Day 4 of Packrat refusing to register here. Day 2 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
You're doing it again.
Let's hope Miller KEEPS on doing it again...
Day 4 of Packrat refusing to register here. Day 2 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
He can't help it, he's quite insane you know.
my anti groupie can't get through life without me.
And on through til June.
Nah...he can quit any time after Sunday...
Day 4 of Packrat refusing to register here. Day 2 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
I know my Nissan truck is rated at 19 and I get 20-22.
You're special too...
Day 4 of Packrat refusing to register here. Day 2 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
Keep in mind my anti groupie doesn't own a vehicle...(chuckle)
my anti groupie can't get through life without me.
Correct for once...I own 2 and you, without any authorizaton and possibly unlawfully, having looked at my credit profile know that to be true...
Day 4 of Packrat refusing to register here. Day 2 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
Miller time today!
Let's hope...son is having a good weekend in Walpole...let's keep it going...
Day 7 of Packrat refusing to register here. Day 5 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
Pittsburgh becomes the enemy this week. Sabres at Pens Tues and Duquesne at St Bona Wed.
Hate Duquesne even though they got about 70k of my money courtesy of my oldest son attending there...
Day 7 of Packrat refusing to register here. Day 5 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
3rd generation Bona grad an current season ticket holder.
Need an early 3rd period goal
Yes! USA ties it!
Choke goalie... Just kidding...he deserves MVP but he must see Crosby in his sleep...
Day 7 of Packrat refusing to register here. Day 5 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
Shit!
You too for that matter but, dude, I am living irony right now...
Day 7 of Packrat refusing to register here. Day 5 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
I watched the second half of the game - half of the second and all of the third period, plus the OT. First time I've watched hockey in a zillion years and it was exciting. I never realized hockey players spit as much as baseball players do.
Shit shit shit!
Greatest sport in the world after fucking...
Day 7 of Packrat refusing to register here. Day 5 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
I know...
Day 7 of Packrat refusing to register here. Day 5 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
Wife just said the Canadian goalie is better looking... I'm looking for my lawyer's number...
Day 7 of Packrat refusing to register here. Day 5 Of Boofer The One Eyed Wonder Bot refusing to answer: When is Blackwell going to have the recount?
#2. To: Skip Intro, Badeye (#1)
#3. To: Skip Intro (#0)
#4. To: Badeye (#3)
#5. To: Badeye (#3)
(Edited)
My H3 is getting 21 mph these days.
#6. To: war (#5)
#7. To: Bartcoprules (#6)
(Edited)
#8. To: Bartcoprules (#6)
#9. To: war (#7)
Let's hope Miller KEEPS on doing it again...
#10. To: Bartcoprules (#9)
#11. To: war (#5)
EPA Rating H3 Local 16 Highway 19...but Boofer gets 21 because he's....special...
#12. To: dont eat that (#11)
#13. To: dont eat that (#11)
#14. To: Badeye (#13)
(Edited)
Keep in mind my anti groupie doesn't own a vehicle...(chuckle)
#15. To: war (#10)
#16. To: Bartcoprules (#15)
#17. To: war (#16)
#18. To: Bartcoprules (#17)
#19. To: war (#18)
#20. To: war (#18)
#21. To: war (#18)
(Edited)
#22. To: Bartcoprules (#21)
#23. To: war (#18)
#24. To: Bartcoprules (#23)
#25. To: Bartcoprules, war (#21)
Yes! USA ties it!
#26. To: war (#24)
#27. To: Fred Mertz (#25)
#28. To: Bartcoprules (#26)
#29. To: Bartcoprules (#26)
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