International Law

Getting a Hummer in Sichuan

By Stan

Not really sure what to make of this development:

The bankrupt US carmaker GM is reported to have an agreement to sell gas-guzzling brand to China’s Sichuan Tengzhong

The bankrupt car manufacturer General Motors has struck a tentative deal to sell its gas-guzzling Hummer brand to a Chinese company, raising the prospect of quasi-military American vehicles becoming a mainstream choice for drivers in China’s rapidly industrialising towns and cities.

A day after filing for chapter 11 bankruptcy protection to shield itself from $172bn in debts, GM signed a memorandum of understanding to offload Hummer to Sichuan Tengzhong, a manufacturer of heavy industrial machinery based in the south-western Chinese city of Chengdu.

A source close to the negotiations said Tengzhong would pay between $150m and $250m for the business. It will be the first time that a Chinese company has purchased a US car brand and Tengzhong has pledged to clean up Hummer’s dismal environmental image by developing models which use less petrol.

Tengzhong’s chief executive, Yang, Yi, described Hummer as a name “synonymous with adventure, freedom and exhilaration”. He said: “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.”

If there was any country left in the world where this type of automobile could still be sold, it certainly is China. There are no doubt lots of filthy rich men running around here that would like nothing more than to purchase this sort of “fuck you” status symbol with which to impress their friends, their mistresses, and their friends’ mistresses.

On the other hand, is the brand really worth that much money? Hard to believe, given that Hummer probably doesn’t have much of a shelf life, given popular trends.

Wonders never cease. It comes to mind that Tengzhong may also wish to use the “Hummer” brand on other products, such as car accessories or clothing. That might earn them a few more bucks, I suppose.

If they really want to be adventurous, however, they should branch out into unrelated “Hummer” products. I think “Hummer” brand mouthwash could be a very popular feminine hygiene product. “Hummer” breath mints? Chewing gum?

I should probably bail out of this post now while I can . . .

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Full post as published by China Hearsay on June 03, 2009 (boomark / email).