BREAKING: GM Sells Hummer, American Suburban Security To China

Illustration for article titled BREAKING: GM Sells Hummer, American Suburban Security To China

GM officially reached an agreement today to sell the Hummer brand to China's Sichuan Tengzhong Heavy Industrial Machinery. Government approval is expected by the end of this year or early 2010 for a rumored sale price of $150 million.

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Earlier reports were Tengzhong wanted Hummer to eventually have a manufacturing plant in China and a dedicated dealer network there, which Hummer doesn't have today. But, Hummer is expected to keep its headquarters and current manufacturing in the U.S., as well as its current management and engineering teams.

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For those fearing the rapidly expanding industrial might of China transforming into building our own military vehicles for us, keep in mind the transaction won't include Hummer-related military technology or military truck production currently managed by Mishawaka, Ind.-based AM General. Good luck crushing those fears in the mind of every red-blooded 'merican male who bought a Hummer from GM since they bought the rights to sell civvie-versions a decade ago and who's now seeing the company sell the brand to a company that they think is named after a type of Chinese food. [PickupTrucks]

Photo Credit: Scott Olson / Getty Images News

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DISCUSSION

smalleyxb122
smalleyxb122

When I first read $150 million, I thought, "Damn, that's cheap for a car brand."

Then I thought about what was tied to that $150 million.

Add to that that they are less of a manufacturer than they are a coachbuilder, since they are more or less rebodying existing GM vehicles, and you question just what assets exist to offset the liabilites to the tune of $150 million.

I personally don't have a problem with Hummer as a brand (if people will buy them, I don't begrudge someone being willing to build them), but as a vehicle, I think that they are silly faux-militaria and are overpriced.

Figuring in the social stigma associated with the brand name, and a newfound dose of xenophobia, "Hummer" is just a liability.

Buy the assets, and build some trucks, but let the brand die.