Wednesday, June 3, 2009

Tengzhong is buying Hummer NOT Humvee from GM...It is more Hollywood than Combat appeal.

Tengzhong is buying the Hummer brand from GM, not the military Humvee, which is made by AM General Corp. of South Bend, Ind. The price wasn't disclosed but is expected to be less than $500 million. GM estimated the sale will preserve 3,000 U.S. jobs in factories and dealerships.

That a Chinese maker of dump trucks and asphalt spreaders is acquiring a brand that in some ways symbolizes America's military might is likely to be seen as a reflection of China's rise as a global power. But China's embrace of a brand notorious for gas-guzzling will also spotlight China's own struggle to contain the environmental effects of a growing obsession with the automobile.

Yang Yi, Tengzhong's CEO, emphasized the attraction of the deal in a statement on the firm's Web site. "The Hummer brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business," he said, while also hinting at more fuel-efficient products.

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