HUMMER auto news

HUMMER hanging on: Tengzhong in talks with Chinese government to clear sale

Chinese National Radio recently reported that Tengzhong wouldn't be allowed to purchase Hummer due to environmental concerns. The company released a statement after that news broke saying that while there was no "definitive agreement," the CNR report wasn't based on facts from the government regulatory body in question, and Tengzhong is still working on the deal.

Last week, in a report titled "Tengzhong may get green light from the regulators for its acquisition of Hummer," CNR's take on where things appears to back up Tengzhong's view that the game is not yet played. The company's discussions with the National Development and Reform Commission (NDRC) and the Ministry of Commerce -- it needs approval from both parties -- have begun, and three options for concluding a deal were proposed.

If Tengzhong can convince the authorities of its expertise and business blan, and gets approval from both parties, it wants to set Hummer up in Sichuan province. If there is resistance to setting Hummer up directly, Tengzhong could try to base the company in one of China's ten bonded areas -- harbor points where the vehicles aren't officially "in" the country until taxes and fees are paid -- but this could impact the company's ability to sell Hummers in China. Or, the company could simply become a foreign investor in Hummer.

It isn't clear whether those options are Tengzhong's take on the purchase, or if that was just more speculation from CNR. Hummer had no comment on the matter.

eBay Find of the Day: Hummer H1 gets beaten with aerodynamic ugly stick

Inside, it's been all tricked out with a trifecta of television screens, ostrich leather interior, iPod-compatible entertainment system, sat-nav, back-up cameras...the works. Even the turbodiesel V8 has been tweaked and mounted with a polished aluminum snorkel, complimented by a chrome Mack truck bulldog hood ornament. Oh, and it has a $2,000 train horn, just in case someone can't see this behemoth coming from a mile away. All this can be yours for the low price of $89,900 or best offer.

Gallery: Hummer H1 custom on eBay

Autoblog Comparo: Jeep Wrangler Unlimited Rubicon vs. Hummer H3T

Last year, we compared the dirtside manners of the Hummer H2 and Toyota Land Cruiser. Both trucks did everything we asked of them, but at the end of the excursion we were left with another question begging to be answered: could the Hummer H3T stand up to the Jeep Wrangler Unlimited Rubicon? These cruiserweights live on a fatter part of the buying curve, and any time a Jeep is summoned to the ring, the other vehicle is inevitably the challenger. Even though the H3T is still relatively new to the world, it came time to find out if it was ready to stand up and fight for its place. Follow the jump to see how it held up.

Gallery: Jeep Wrangler Unlimited Rubicon vs. Hummer H3T

Photos Copyright (C)2009 Jonathon Ramsey / Weblogs, Inc.

Continue reading Autoblog Comparo: Jeep Wrangler Unlimited Rubicon vs. Hummer H3T

Hummer buyer to start talks with Chinese gov't to win sale?

China's Sichuan Tengzhong Heavy Industrial Machinery, the company that recently surfaced as the top bidder for Hummer, is about to start talks with Chinese regulators to secure the deal. While General Motors has a tentative agreement with Tengzhong, the two companies have yet to receive the state's blessing, which is necessary for the sale to go through.

Tengzhong, GM and Hummer have been working on a proposal to present to the National Development and Reform Commission, despite speculation that the deal will be blocked by those Chinese officials. Tengzhong reportedly remains optimistic, saying they haven't heard anything from the authorities and don't expect to until their proposal is actually submitted.

Speculation that the deal was in jeopardy began when a China National Radio station reported that government regulators would block the deal based on environmental concerns about Hummer vehicles and the fact that Tengzhong doesn't have much experience as an automaker. Tengzhong is better known as a manufacturer of special-use vehicles, structural components for highways and bridges, construction machinery and energy equipment, so some have suggested this is little more than a publicity stunt for the company, but it certainly sounds like they are serious about the deal now.

REPORT: China to block HUMMER sale to Tengzhong

General Motors' pending deal to offload its unwanted HUMMER brand may have hit a major snag. Although no official word has come from the Ministry of Commerce or the National Development and Reform Commission, state-run radio organizations are reporting that the Chinese government will indeed block the sale of HUMMER from GM to Sichuan Tengzhong Heavy Industrial Machinery Co. It's impossible to know exactly how this whole mess will play out, but these reports clearly jive with the general sentiments we've been hearing since the deal was first announced.

According to Chinese radio reports (via the BBC), there are two main objections to the HUMMER deal. First, the brand's environmental credentials don't match up with the direction the Chinese government wants its automakers to head. Second, there are questions as to whether Tengzhong has the expertise to properly manage a large automaker as it's business dealings so far have all been in the construction equipment segment.

Not so fast, says Tengzhong. In a newly-released statement regarding these latest reports, the company had this to say:

Some people may have views and speculation, but the Chinese government has a process that we respect... The view expressed on China National Radio's website did not quote or source anyone at NDRC. We do not yet have a definitive agreement, but are developing our proposals with GM and Hummer and we will continue to engage with the appropriate authorities in an appropriate manner.

Gallery: 2008 HUMMER H2

Critics from China berate proposed HUMMER sale, rekindled automaker could be based in Nashville

As Chinese media outlets continue to voice derision over GM's agreement to sell its unwanted HUMMER division to Sichuan Tengzhong Heavy Industrial Machinery Co., there are real questions as to whether or not the Chinese government will even approve of the purchase.

State-run media outlet Xinhua News Agency has suggested that Tengzhong's interest in HUMMER may be little more than a publicity stunt, saying, "It couldn't achieve this result (of raising its profile) even if it spent $100 million on advertising." Commenting on Tengzhong's deal to purchase HUMMER, China's Minister of Commerce Chen Deming said:

We hope Chinese companies learn more about international market rules and development trends in their industries and make prudent investments.

Gallery: 2008 HUMMER H2

Red Cross HUMMER H3 wildfire photo reproduced on postage stamp

HUMMER's relationship with the American Red Cross extends back to 2005 when the SUV manufacturer first began supplying the agency with donated trucks for use in the disaster-stricken areas affected by Hurricanes Katrina and Rita. This relationship has been ongoing ever since, and in 2007, Brad Mellon, a volunteer with the San Diego/Imperial Counties chapter, snapped a stunning photograph of one the ARC's HUMMER H3s against the harrowing backdrop of a California wildfire.

While HUMMER waits to write a new future for itself under Chinese stewardship, its ties with the Red Cross have now been immortalized as part of a postage stamp issued by the Republic of Guinea. The stamp, commemorating Red Cross founder Henri Dunant, features artwork by Frenchman P. Pavilland, who saw fit to make the image of the H3 against the raging fire the background of the postage he was commissioned to design. So HUMMER goes out in a blaze of glory, so to speak... in Guinea, at least.

REPORT: Sichuan Tengzhong to finalize Hummer deal in third quarter, keep U.S. production?

According to Automotive News, the deal between General Motors and Sichuan Tengzhong Heavy Industrial Machinery to offload Hummer should be complete by October. A statement made by STHIM's general manager, Yang Yi, further suggests that the Chinese company has no plans to export Hummer's equipment and/or technology to its home market, meaning that the truck brand's offerings should remain North American produced for the foreseeable future.

The details for Sichuan Tengzhong's winning bid for Hummer have not been disclosed, but according to AN, investment bankers are suggesting that the deal was likely brokered for around $100 million in cash, and Yi confirmed that the Chinese heavy machinery company would not be assuming any of GM's debt in the process.

Assuming STHIM and General Motors can sew up the bid for Hummer (in the third quarter or otherwise), the Chinese government will still need to grant approval before the deal can move forward.

Gallery: Detroit 2008: HUMMER HX Concept

Is selling Hummer the morally correct thing to do? [w/POLL]

General Motors' potential sale of Hummer to Tengzhong is probably good news for those interested in seeing the company return to independent and profitable status as quickly as possible. The move should see enable GM to shed the negative political and social association of the star-crossed SUV brand and get some money in return. There is actually a better option, says The New York Times' Ethicist.

The Ethicist frames the issue as figuring out which is more important: GM's employees and shareholders (i.e., the American public) or the environment. Hummer vehicles are too heavy and use too much gas and, the Ethicist says, hazardous products should be regulated by the government. Now that the government basically owns Hummer, there is "an opportunity to reconsider transportation policy, including from a moral perspective. Such an analysis urges not merely discontinuing the Hummer but also significantly reducing our reliance on the private car." Here's more:

Shutting down Hummer could even turn out to be cost-effective. The sale price, perhaps as much as $500 million, may well be dwarfed by the long-term costs - in environmental damage, in public health - to us taxpayers, G.M.'s majority owners, of keeping those three tons of steel on the road. [...] The restructuring of G.M. gives us a chance to avert the fate of being laid low by our own automobiles, the grand manifestation of America's industrial might. The first thing we do, let's kill all the Hummers.

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REPORT: Independent Hummer sees alt-fuel model within five years, still looking at H4

Now that General Motors has all but officially offloaded the HUMMER brand to Chinese machinery and equipment manufacturer Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., the next logical question is where does the brand go from here? Perhaps the best person to answer that question would be Jim Taylor, the man who was put in charge of the brand to get it ready for sale and who will reportedly stay on to lead Hummer under its new ownership.

Speaking in an interview with Paul Eisenstein from The Detroit Bureau, Taylor had plenty of interesting things to say about Hummer's future. For instance, he notes:

"We need to head towards CAFE compliance - which means smaller and more fuel efficient, or we're dialed out. Think of the smaller H4 we were showing at the auto show and it could safely conjectured we would enter into that space."

Admittedly, that's a lot to chew on. A more environmentally-friendly Hummer would surely be a tough nut to crack, especially since the brand's followers will understandably expect future Hummer models to uphold the rough-and-tumble, go-anywhere nature of the breed. It should prove very interesting to see how this all proceeds, and Taylor certainly has our interest piqued.

Gallery: Detroit 2008: HUMMER HX Concept