Chinese Hummer?
by FinanceCookies - February 25th, 2010.Filed under: Investing and Opportunity.
General Motors Co. plans to decrease their production of the Hummer after their attempt to sell the line to a Chinese company. Tengzhong is a heavy machinery company based in the Sichuan province.
The deal falling through was another addition to the long list of disappointments that General Motors has faced lightly. After their losses on the Hummer, GM plans to focus on their four successful brands: Chevrolet, Cadillac, Buick, and GMC.
They also plan to cease production of all other brands. Stopping the production of Hummer and closing the plant would mean the loss of jobs for over 3,000 people.
The Hummer was initially applauded for its fierce military image. However, after the increases in oil and gas prices its image evolved into an inefficient, low gas mileage vehicle.
Currently China is trying to promote the idea that their vehicles are friendly to the environment. The Hummer is not viewed as an environmentally vehicle, and would be this idea at risk. This is only a small part of the reason China company Tengzhong was unable to complete the deal.
This incompletion was the third deal to fall through for General Motors.
