Ouch! Is this for real? General Motors yesterday announced that Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to complete the acquisition of HUMMER. GM will now have to begin the dismantling process of the HUMMER operations.
Remember when GM announced that it has struck the sale deal with Tengzhong, check article here? Well, apparently Tengzhong saw that HUMMER deal is bad deal in terms of economic crisis and that gas guzzler SUVs don’t sell well anymore.
“One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed,” said John Smith GM vice president of corporate planning and alliances. “GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”
[...] seal the deal. Not so quite yet. This time it is not the Chinese who is pulling out like with the Hummer deal with Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. deal with Chrysler. Geely and Ford’s Volvo deflated due to problems at Ford Motor Co., but [...]