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Hummer to be sold to Chinese firm

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by MaxShimba, Jun 3, 2009.

  1. MaxShimba

    MaxShimba JF-Expert Member

    Jun 3, 2009
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    DETROIT – General Motors Corp. took a key step toward its downsizing on Tuesday, striking a tentative deal to sell its Hummer brand to a Chinese manufacturer, while also revealing that it has potential buyers for its Saturn and Saab brands.

    China's Sichuan Tengzhong Heavy Industrial Machinery Co. said Tuesday afternoon that it reached an agreement to acquire the brand from GM for an undisclosed ammount. The Detroit automaker had announced Tuesday morning that it had a memorandum of understanding to sell the brand of rugged SUVs, but it didn't identify the buyer.

    Sichuan Tengzhong deals in road construction, plastics, resins and other industrial products, but Hummer would be its first step into the automotive business.

    GM said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships. Tengzhong said it will assume GM's existing agreements with Hummer dealers.

    "We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S," Chief Executive Yang Yi said in a statement.

    As part of the proposed transaction, Hummer will continue to contract vehicle manufacturing and business services from GM during a transitional period. For example, GM's Shreveport, La., assembly plant would continue to contract to assemble the H3 and H3T through at least 2010, GM said. AM General LLC in Mishawaka, Ind., makes the larger H2 under contract for GM.

    Hummer will keep its existing management team and remain based in the United States, the companies said. Tengzhong said it expects to expand the brand's dealer network worldwide, including to China.

    "GM is close to a sale of its Hummer brand, which is good news for the 3,000 Americans who will be able to keep their jobs, the two American plants that will remain open and the more than 100 Hummer dealers that should be able to stay in business all around the country," White House spokesman Bill Burton said earlier in the day.

    On Monday, the Shreveport plant, which has about 800 workers, escaped being among 12 plants that GM said would be shut down by next year. The plant, which employed 3,000 several years ago, also produces Chevrolet and GMC pickups.

    Johnny Bell, 59, who has worked at GM for 28 years, said many workers are still concerned about the plant's long-term future.

    "Good news is good news, but we want all the news," he said. "We're concerned about what happens after 2010."

    Morgan Johnson, head of the United Auto Workers local at the plant, said GM indicated to the union that pickup assembly would continue in Shreveport through 2012.

    "We're just happy that the doors are still open considering all the plant closings," said Sharon Brock, 52, who has worked at the sprawling plant for 26 years.

    GM also said Tuesday that it has 16 buyers interested in purchasing its Saturn brand, while three parties are interested in the Swedish Saab brand.

    Chief Financial Officer Ray Young told reporters and industry analysts on a conference call that GM is continuing to pursue manufacturing agreements with a new Saturn buyer.

    GM would like to sell the money-losing Saturn brand's dealership network, contracting with the new buyer to make some of its cars while the buyer gets other vehicles from different manufacturers.

    At the same time, bridge loan discussions with the Swedish government are progressing, Young said.

    GM, which filed for Chapter 11 bankruptcy protection in New York on Monday, is racing to remake itself as a smaller, leaner automaker. In addition to its plan to sell the Hummer, Saab and Saturn brands, GM will also phase out its Pontiac brand, concentrating on its Chevrolet, Cadillac, Buick and GMC nameplates.

    The company hopes to follow the lead of fellow U.S. automaker Chrysler LLC by transforming its most profitable assets into a new company in just 30 days and emerging from bankruptcy protection soon after.

    But GM is much larger and complex than its Auburn Hills-based rival and isn't up against Chrysler's tight June 15 deadline to close its deal with Fiat Group SpA.

    Sharon Lindstrom, managing director at business consulting firm Protiviti, said the companies pose different challenges. But as with Chrysler, she notes that the Treasury Department made sure many of GM's moving parts were in order ahead of time so a quick bankruptcy reorganization might be possible.

    "They had a lot of their ducks in a row because the terms of the government financing forced them to get all the parties to the table in a very, very short period of time," Lindstrom said.

    Separately, the German government said Tuesday it paid out the first euro300 million ($425 million) in bridge loans to GM's Adam Opel GmbH division. The loans are part of a deal to shrink GM's stake in Opel and shield it from GM's bankruptcy protection filing in the U.S.

    Canadian auto supplier Magna International Inc. and Russian-owned Sberbank will acquire 55 percent of Opel.

    A sale of the Hummer brand had been expected. Chief Executive Fritz Henderson had said in April that the automaker was expecting final bids from three potential buyers within the month.

    Eric Lane, vice president of Baton Rouge, La.-based Gerry Lane Enterprises, which has four dealerships — including one offering Hummers — welcomed the sale.

    Lane said a lack of new products and the recession figured into the Hummer equation much more than last year's runup in gasoline prices. "I haven't had a single owner complain about mileage. Nobody buys a Hummer because of the gas. You don't buy a vehicle for $60,000 and worry about the price of gas."

    Critics had seized on the rugged but fuel-inefficient Hummer as a symbol of excess as GM's financial troubles grew and gas prices rose. Sales at Hummer, which is known for models with military-vehicle roots, have been in a steep slide since gasoline prices rose to record heights last summer. For the first five months of this year, Hummer sales are down 64 percent.

    GM nailed down deals with its union and a majority of its bondholders and arranged the Opel deal in order to appear in court Monday with a near-complete plan to quickly emerge with a chance to become profitable.

    The government has said it expects GM to come out of bankruptcy protection within 60 to 90 days. By comparison, the judge overseeing Chrysler's case approved the sale of its assets to a group led by Italy's Fiat in just over a month. Some industry observers think Chrysler could emerge as early as this week.

    During Monday's hearing, GM attorney Harvey Miller stressed the magnitude of the case and the importance of moving GM through court oversight as fast as possible. He noted that the automaker only has about $2 billion in cash left.

    "If there's going to be a recovery of value, it's absolutely crucial that a sale take place as soon as possible," Miller said in his opening statement.

    The automaker wants to sell the bulk of its assets to a new company in which the U.S. government will take a 60 percent ownership stake. The Canadian government would take 12.5 percent of the "New GM," with the United Auto Workers union getting 17.5 percent and unsecured bondholders receiving 10 percent. Existing shareholders are expected to be wiped out.

    U.S. Judge Robert Gerber moved swiftly through more than 25 mostly procedural motions during the automaker's first-day Chapter 11 hearing.
    Gerber set GM's sale hearing for June 30, putting it on a path similar to that of Chrysler. Objections are due on June 19, with any competing bids required to be submitted by June 22.

    Gerber also gave GM immediate access to $15 billion in government financing to get it through the next few weeks, and interim approval for use of a total $33.3 billion in financing, with final approval slated to be ruled on June 25. The funds are contingent on GM's sale being approved by July 10. Gerber also approved motions allowing the company to pay certain prebankruptcy wages, along with supplier and shipping costs.

    The sheer size of GM makes it a more complicated case than Chrysler.

    GM made twice as many vehicles as Chrysler's 1.5 million last year and employs 235,000 people compared with Chrysler's 54,000. GM also has plants and operations in many more countries, meaning it will likely have to strike separate deals to navigate the bankruptcy laws of those places.

    Henderson said GM has learned a few things by watching Chrysler's case.

    "Certainly the court showed that it can address 363 (sale) transactions in an expeditious fashion," Henderson said at a news conference Monday. "Particularly in our case with what will be a very large 363 transaction." GM's filing for Chapter 11 bankruptcy protection is the largest ever for an industrial company. GM, which said it has $172.81 billion in debt and $82.29 billion in assets, had received about $20 billion in low-interest loans before entering bankruptcy protection.

  2. Invisible

    Invisible Admin Staff Member

    Jun 3, 2009
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    General Motors has lined up a Chinese manufacturing company as the buyer for Hummer, in what could be the first entry into the U.S. auto market by a Chinese company.


    GM has a tentative agreement to sell the SUV brand to Sichuan Tengzhong Heavy Industrial Machinery Co. of China, the companies said Tuesday.

    The sale is expected to close by the end of September and requires regulatory approval.

    GM did not disclose the selling price.

    GM said the deal is expected to save 3,000 U.S. manufacturing, engineering and dealership jobs.

    Tengzhong is a privately held company in the Chinese province of Sichuan with big ambitions.

    "We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S," Yang Yi, CEO of Tengzhong, said in a statement.

    The company is a leading Chinese manufacturer of road, construction and energy industry equipment.

    Selling off Hummer will allow GM to refocus on four key U.S. brands. The automaker's restructuring plan also calls for selling off Saab and spinning off Saturn, while Pontiac is to be phased out.

    GM said Tuesday that it has 16 parties interested in acquiring its Saturn brand. The company has said it has three interested parties in its Saab brand.

    The Hummer announcement comes on the heels of GM's Monday filing for bankruptcy reorganization, a process the company hopes will allow it to quickly spin off its good parts into a new GM and leave behind bad parts in the bankruptcy process.

    In a court affidavit, GM CEO Fritz Henderson said last summer the company estimated it might get more than $500 million for the sale of Hummer but had been unable to get a deal on such terms.

    As part of the Hummer deal, GM has agreed to provide manufacturing and business services under contract during a transitional period. It plans to continue building the H3 SUV at its Shreveport, La., assembly plant through at least 2010.

    A joint news release by the two companies said Hummer would continue to be headquartered in the United States and be managed by its existing leadership team, which intends to expand the Hummer dealer network worldwide, including in China.

  3. K

    Kifimbocheza JF-Expert Member

    Jun 3, 2009
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    Wachina ni Balaaaaaaaaa....................wanaona mbali si kama sisi
  4. MaxShimba

    MaxShimba JF-Expert Member

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    Wachina LOL, Wakiupata huu ulaji itakuwa noma, maana watatengeneza photo copy za hayo Mahummer mpaka mtakoma.
  5. Field Marshall ES

    Field Marshall ES JF-Expert Member

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    - Nasikia wameinunua rasmi leo, maana nimesikia mnyamwezi mmoja leo BBC akilia kama mtoto mdogo kuhusu kuwa under Mchina, halafu Mchina msemaji wa kampuni akasema huu mradi soon utakuwa number one duniani!

    - Bravo China! hivi sisi bongo si tulikuwa tunafuata siasa kama ya hawa wa-China, sasa tulikosea wapi?


  6. K

    Kimweri JF-Expert Member

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    hatujawahi kufuata kikamilifu siasa za wachina mkuu!!we are way of targets!!
    mie naona sie tunafuata mkumbo,kila tunachoona kinavuma tunakifuata..,wakija wamarekani wakituambia vyama vingi..,oyeee..,akija mchina akisema ujamaa..,oyee!!no masterplan!

    1967 wakati sisi tunatangaza AZIMIO la ARUSHA china was introducing market economy after realising that ujamaa umefeli!!na hii waliiplan 5 years before!that tells that ujamaa china ulikufa 1970's!sababu kubwa ya kuchelewa kwa mapinduzi ya 'deng xiaoping" ni ukinzani uliotokana na kundi la kina "mao" waliokuwa wakiamini ujamaa unanafasi..,kupoteza eyesight"vision" kwa mao in mid 70's na kukabidhiwa majukumu mazito na CCP kukamfanya Deng xiaoping aweze kupata get-go ya masterplan such he is credited as father of modern china!

    sasa swali la kujiuliza ni,kwa nini sie tuliendelea na ujamaa wakati wakubwa zetu waliukacha?may be tulitegemea RUSSIA wange-prevail.i really don't know.

    interesting observation ni kuwa before entering market economy china had a very clear plan,they call them five-eleven year plans.these are pure geniuses from chinese leaders.
    first they sent their student overseas mostly russia,thousands(and they came back-almost all).then after making sure they have sound education base they started to industrialize their the same way that japan then korea did,20 years before,then after having all the basic industries,they started to make sure that they produce everything,for anyone,that is when china became a famous heaven for western companies,they offered very convenient environment for overseas companies to open their factories in china,same time they were building theirs.REMEMBER this was done after they eliminated power,water and food problems.
    it took a huge political toll on their leaders,everyone hated them,including their ppl,but those guys knew what they were doing.
    by the time the west woke up,china was just as industrialised as the US!!they could offer anything..,all they lacked was niche and high tech.
    so there came another plan..,scientific development...,they started to buy every single technology on their way.offer millions of us$ to companies that would settle in china.same time heavily controlling their currency.
    with 1.3Billion people,it was just a matter of time b4 the whole world discovers the potential of china as consumers/customers.
    multinational started flowing to china.soon they had sophisticated tech giants like microsoft,boeing and intel opening their research labs in china silicon valley,Haidian beijing.
    then their leaders did a master gamble again..,bidding for 2008 olympics!chinese don't giv shit about sports!!(incase u didn't know).for them the olympics was all about MIAN'ZI-saving face!
    they wanted to create the biggest sporing event in the world so that they could turn the world to their face-get attention,publicize themselves...,getting an opportunity to spend the huge reserves they had accumlated wthout outcry from their poor farmers!
    So, rebuilt cities and strengthened their infrastructure,they modernised they IT systems,as well as developing their own 3g network.when the olympics was over their leaders were laughing all the way to the bank!1.9trilion in forex!

    to summary it up china rise is a very complex series of events that were carefully constructed!!and just watch out for 55 years from 1978..,then you will see what i mean by this..,

    we never did anything same as them,we never even copied them!we were way off-track,Chinese are to complex to be understood easily!!and that is what our leaders have been doing for 30 years!!embarrassing.

    sie for 30 years tumekalia kuomba weee..,wenzetu wanaomba wasomeshewe engineers,sie tunafisadi scholarships!
    wachina wanakataza kuuza ardhi yao kwa wageni kwa sababu yoyote ile,sie tunauza hadi national park(loliondo etc).
    in short ardhi in china is solely chinese even if u are bill gates!you have to find a chinese to partner with so as you co-own the land tena in strictest of measures!only if you reside,work,and live in china!

    there are so many things we do wrong,or we don't do at all..,

    wenzangu na mie wamekalia kupiga kelele china wanatuletea bidhaa feki,oh vitu vya china bom,that's all we do,wakati wenzetu wanapaa...,china now is what japan was in 1960's...,it has just improved faster!

    siku tukiamka kwenye usingizi wetu mzito tutagundua kuwa we were alone!
    china will soon be granted market economy status na EU,sie bado ni ma-consumer!hata producers bado..,
    nchi yetu ni kama biashara isiyo na mbele wala nyuma..,we buy..,we buy.., we buy..,we consume..,we contribute NOTHING to the world..,ukiondoa minerals and few natural resources that we do not profit from.
    no wonder tuna super duper deficit,

    it is very sad viongozi wetu wanapodanganya wananchi kuwa tz is following chinese politics or economic stratergies!!and one day we will be like them!crap!

    ndio maana unaona kikwete ana ndoto za kuifanya kigamboni iwe next PUDONG,SHANGHAI..,ijae maghorofa na investors wa kila aina..,who in his right mind will come to invest in a country with a singles source of power(tanesco-hydroelectric).a tiny airport,no real economy(yes our economy is the mickey mpuse type-consumers)?????!!
    no one,at least no one to an extent of transforming kigamboni in 10 years!!that's a pipe dream.just as many others that our dear press dream.

    investors wanaokuja TZ either wamekosa pa kwenda,au wana malicious activities,triple A investors will never set foot here..,(no real shareholder will see that happen).

    that is why our biggest taxpayers are vodacom(coonsumer),TBL(consumer),TCC(consumer)...,and many other companies that,if they leave tommorow we are left with either empty cans of soda or useless papers..,
    we don't have real investors because we don't have real plans.

    huyu jamaa kikwete yeye anawaza kutembelea nchi za wenzie tu full time,watendaji wake wanawaza semina na posho 24/7!!mwananchi wa kawaida is so damn outdone by life that anything is a blessing no matter how crapy...,

    GOD bless my country!
    Last edited: Jun 5, 2009
  7. Field Marshall ES

    Field Marshall ES JF-Expert Member

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    - Ahsante mkuu darasa zito sana hili, ngoja nii-print nile elimu ya bure!.


  8. Yo Yo

    Yo Yo JF-Expert Member

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    Wakuu inaweza kuwa post ya mwezi JF.....mkuu kimweri hili darasa tosha kabisa....
  9. Kibunango

    Kibunango JF-Expert Member

    Jun 4, 2009
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    Sio mchezo, manake kule kona kubwa kumechoka ile mbaya...!
  10. K

    Kakalende JF-Expert Member

    Jun 5, 2009
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    Just a little correction; Azimio la Arusha ni 1967.
  11. C

    Chief JF-Expert Member

    Jun 5, 2009
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    A PLUS Mwanawane!
  12. K

    Kimweri JF-Expert Member

    Jun 5, 2009
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    Nadhani Tatizo letu kuu viongozi wetu ni wagumu sana kukubali failures zao.they act kimungu mtu flani hivi..,
    sisemi tuwe kama izrael au india where by a single mistake can take down a president almost immediately,and where the validity of a president/prime minister only stays as long as his policies work for the benefit of the people(i always wish TZ will be this way one day).

    All i ask is a simple accountability habit among our president/prime minister and policy makers at large..,

    down the path we are going down now..,consume like no other and produce nothing we have no future as a nation.ASK any multinational company leader,or any economist from the other side of the world.
    you are as strong as what you can produce,contribute..,not how much you can buy.this is shown on how CHINA became so strong with such a lower GDP per capita..,chinese at large can hardly buy expensive western products but they can produce anything your eyes can see..,
    from that expensive TV,high end mobile phone,even the boeing you are flying on is made in china incase you didn't know.
    THE US being as smart as it is knew stopping CHINA from producing wont happen..,the US simply will never outnumber the chinese engineers,workersa nd cheaply available IT proffesional ready to do anything for little.
    BUT the US knew they could outsmart CHINA through High-tech field..,where constant innovation and Research and Development is the key for success..,things like semiconductors(the future).is heavily controled by US..,(intel,AMD,etc).
    the US with it's almost unthinkable intellectual powers,have the advantage of high quality education system,and immense levels of investment in R&D(china is investing heavily in R&D recently).
    BUT the per capita investment in R&D is just too little in china due to it's huge population.china has a lot to handle..apparently 1.5 billion people live in china with over 800million people living in rural areas..,and not so rich.that makes it a personal plan of Chinese leaders to modernize the Chinese rural areas.
    China knows that now it does'nt need highest technology to solve it problems but rather it needs smarter technology..,one that could employ it's people and keep the nation at bay.
    BUT their plans for the future smell huge AMBITIONS..,they buy anything with new technology..,they invest everywhere with future riches..,(gave billions of dollars to brazil,venezuela in exchange for natural resources guarantee for the next 30-50 years).
    SINOPEC holds the highest stakes in Australia's Largest IRON ORE Mining company.
    and they don't do it through wars as the us did..,

    decent questions to ask ourselves..,do we need to buy a pair of jeans from CHINA?the answer is NO.tuna pamba..,URAFIKI,MWATEX sijui,mafundi vyerehani kibao!!LEVI is a western designer who only draw sketches of his jenses and send them to china ili zishonwe.
    jamani hizi T-shirt tunazovaa hazitengenezwi na maroboti ni watu tu wamekusanywa sehemu moja..,wanapokea order wanashona wanapakia kwenye makontena,
    maziwa ya kunywa,matunda,juice hivi ni baadhi ya vitu tusivotakiwa kununua china au kokote kule.

    SABABU kubwa ya UMASIKINI WETU ni ununuzi wetu usioisha..,kuanzia siku budget inasomwa hadi bajeti inayofuata.

    Rais wetu ku-dream kuwa Tourism will save our country makes me want 2 cry..,that stuffs works for 500,000 population countries like Seychelles and Bahamas and other small countries..,NOT a 40 million people country.

    sikatai TOURISM lakini isiwe sababu ya waziri kutuambia uchumi umeyumba kwa kuwa wazungu hawaji,shabash..,

    it is time we realise that uchuuzi hautupeleki kokote.we need to contribute to the world,sio kukalia kuandika project za HIV na kusubiri hela za wahisani zije,tuzile then mwisho wa wonder bush promised $680million because he knew eventually they will cycle back to his country...,through mamsaps trips..,madawa tununue yao,machine zao..,it is like jamaa alikuja kufanya longterm investment ya cash yao.

    na sie wananchi,wasomi..,BAR mbuzi,grocery kila kona hazitufikishi popote..,maana ndio priority ya kuondolea umasikini cku hizi..,lets invest in core areas..,health,infrastucture,education..,
    HIVI hamuoni hat west wamerudi back to basics ili watoke kwenye recession?!we need to go back to 1,2,3..,no need kuwa na kasi mpya,nguvu mpya au ari mpya yoyote..,haraka,pupa,nguvu zisizopangiwa hazina manufaa..,

    tusiwe na pupa ya kuwa matajiri by the tyme we are 30!!lets spend our youths working hard..,for it is the only thing we will have..,(proud moments of all those problems you solved)..,instead of aibu za kina mramba Et-al.
    sio kwa sababu Beckam,50 cents,jay-z tajiri basi na wewe wataka uwe in like 5 years..,
    part of the story hatuambiwi africa ni kuwa most of people in hte west work just as hard as we do here..,they work 12 hours a day,they take a bus/train to work.they have to save to get their children to school,and those old tourists you see are not actually millionaires!!they are retirees who have worked hard and saved money their whole lives only to get this opportunity to see the world.

    IN AFRICA we are not told that,not every American family has 4 cars,not every American has the latest and the best gadgets,and eats 3 meals a day..,

    we are not told that them also live just the same way we do,the diference is in our governments,in which we play huge parts into(yeah,wewe karani hapo mahakamani nawe ni sehemu ya serikali).the difference is in the systems.our is a broken one..,not useful,a failure.