backtop


Print 108 comment(s) - last by jconan.. on Jun 17 at 9:38 PM

The Chinese plan to increase the brand's international presence

DailyTech reported yesterday on GM's announcement that it had found a buyer for the Hummer brand of heavy utility vehicles.  The mystery buyer promised to take on the brand and help expand its international presence.  In the process it saved a number of jobs at Hummer plants and helped GM complete a major step toward moving out of bankruptcy.

Now the identity of the mystery buyer has been revealed.  Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., a Chinese industrial firm, will be purchasing the brand and attempting to revive it.

States Yang Yi, chief executive of Tengzhong, "We plan to ... allow Hummer to innovate and grow in exciting new ways under the leadership and continuity of its current management team."

He did, however, hint at changes stating that the deal "will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S."

The companies hope to have the deal finalized by September.  The deal does not concern the military Hummer technology owned by defense contractor AM General, which licensed the brand name to GM for civilian vehicle purposes.  AM General will now, in turn, license the name to Sichuan Tengzhong, which will continue the civilian Hummer development.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: They bought a Hummer...
By rudy on 6/3/2009 3:12:51 PM , Rating: 3
This is part of why China will be so successful because unlike Japan they are not dead set on home growing everything. They are perfectly willing to buy an established brand. This does have a benifit you know, if they had tried to make a competitor it would probably have cost them lots of money and they would still be competing which would make it harder to take market share. By purchasing hummer they get a ready to go and produce product, do not increase the number of competitors and can eventually move it anywhere they want. My guess is the hummer brand is already viewed as a nice luxury item in China.

The real problem I have is that the big 3 should probably realize that they will no way be able to compete with cheaper labor in the developing world and IMO they should be moving the other way toward going with high end high quality products the way Mercedes and BMW have done in the US. Instead they are all selling off their high end brands and going to small cheap cars which anyone could easily produce.


RE: They bought a Hummer...
By lagomorpha on 6/4/2009 12:50:57 AM , Rating: 2
Not to mention Chinese branding doesn't exactly create a lot of consumer confidence. Would you drive/trust something called a Dongfeng Motor Mengshi?


RE: They bought a Hummer...
By mindless1 on 6/6/2009 2:59:54 PM , Rating: 2
Then GM is competing with these higher end brands which they already were with Cadillac. Building more luxury vehicles overlooks an important factor, your customers have to be able to afford them, their incomes don't rise magically by making a more expensive product.


"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki