The General Motors announced this afternoon that Chinese industrial giant Sichuan Tengzhong has entered into advanced talks with GM to buy Hummer. This gives much wanted relief to the business community in the auto industry as everyone were asking the question who bought Hummer, giving rise to many speculations.
Was this expected that a Chinese company such as Sichuan Tengzhong would buy Hummer? I say very much yes, and here is why.
Once recently I asked a friend from Chinese auto portal Gasgoo.com about her opinion on how the Chinese cars will benefit from Chrysler and GM dealership closings. She says not much because Chinese cars are not sold in the U.S. market. Then at that point I started to wonder if the Chinese companies would use this turmoil in the U.S. auto industry to enter the U.S. market and advance.
As you may see, that's what happened. We have the first Chinese company Sichuan Tengzhong entering the U.S. auto market by buying Hummer. Now I am wondering if the other Chinese carmakers will use this opportunity to buy other brands for sale and thus enter their feet in the U.S. car market.
Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (or Tengzhong, website www.sctengzhong.com) is a Chengdu-based, privately-owned manufacturer of heavy machinery equipment, including special-use vehicles, highway & bridge structural components, construction machinery and energy facilities. Tengzhong operates two Chengdu-based manufacturing plants in Xinjin Fine Chemical Industrial Park and Southwest (Hangkonggang) Industrial Park.
Since its establishment in 2005, Tengzhong has rapidly developed into one of China’s major engineering companies through a series of successful acquisitions.
GM says that the financial terms will not be released at this time. However, company made sure that 3000 jobs will be preserved in the U.S.
Sichuan Tengzhong says they intend to preserve Hummer's heritage, which is associated with adventure, freedom and exhilaration. The new Hummer buyer intend to assume to keep the same leadership and expand new markets for the luxury car, which they believe is underestimated. "We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S," said Yang Yi, CEO of Tengzhong.
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
