Sale of Hummer to Chinese Company Fails, Brand to Wind Down

Chances of survival for Hummer—the company first catapulted into the spotlight for the unflinching, survivalist nature of its military vehicles—are grim after an announcement from GM that an attempted sale of the brand to a Chinese industrial group has fallen apart. No timeline has yet been given on the promised winding down and cessation of Hummer operations. GM is sharing no details at this time as to why the deal with Sichuan Tengzhong Heavy Industrial Machines failed, but rumors have swirled for some time now that the Chinese government would block the sale. Surprisingly enough, one of the chief reasons cited was environmental concerns—some reports said China wants to limit the number of automakers operating within its borders, and will prioritize those with a better environmental reputation—although doubt of Tengzhong’s ability to properly run a large car company was also proposed as a possible reason. (We also wouldn’t ignore the fact that the history of the Chinese auto industry suggests that, if a company really wants to build a Hummer, it will just go ahead and build something that looks exactly like a

Hummer without going through the convoluted process of buying rights and proper tooling.) Although the sale of Saab to Spyker —finalized yesterday—was completed after GM announced that Saab production and sales would be wound down and the brand gently laid to rest, we reserve little hope for Hummer finding similar redemption. With not just Tzengzhong, but—if the rumors of government meddling are true— all Chinese companies out of the picture, we don’t see who else in the automotive universe might be interested in buying an exclusive maker of humongous, gas-guzzling SUVs. Not only has Hummer’s civilian business fallen flat, but its original game of selling military trucks is slipping away as U.S. forces switch to vehicles such as the M-ATV , built to better protect occupants against the specific perils of our present conflicts. Related posts: Hummer Only Brand For Sale – Car News GM and Tengzhong Sign Agreement for Hummer Sale GM and Sichuan Tengzhong Delay Hummer Deal to End of February

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Sale of Hummer to Chinese Company Fails, Brand to Wind Down