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Posts Tagged "Financial Crisis"

Hummer production pushes through with Tengzhong-General Motors deal

While the global financial crisis has been sweeping the entire nation, the rising environmental concerns and decrease in sales have also lowered General Motor’s odds of raking in potential buyers for the Hummer.

Fortunately, GM confirmed last week that one foreign company is interested in the Hummer sale. Tengzhong, a Chinese company manufacturing industrial machinery, has already sat down with GM to sign a memorandum of agreement over the sale, which is assumed to be concluded later this year.

Sichuan Tengzhong HummerThe Tengzhong-General Motors deal would result in more than 3,000 jobs in the United States which includes manufacturing and engineering, plus more Hummer dealerships in the country. The sales agreement also includes several plans to invest and fund in potential Hummer products that may include more models and powertrains.

Yang Yi, Tengzhong’s boss said in an official statement that he has no desire to take over Hummer technology or facilities. He will, however, strive to expand Hummer on an international level. He disclosed that the same management team of Hummer will stay to ensure the standard of the brand’s design and quality.

Jim Taylor, Hummer’s CEO revealed at Automotive News that Tengzhong will keep the 150 Hummer dealerships in the United States, however, they might have a hard time keeping up with the new standards in fuel economy. In order to meet the 2016 fleet-wide 35.5mpg standard measures, a few changes will be made along with new models, including the H4, and powertrains.

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