The Down Range Forum
Member Section => Down Range Cafe => Topic started by: philw on February 25, 2010, 06:04:45 AM
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DETROIT — General Motors said on Wednesday that it would shut down Hummer, the brand of big sport utility vehicles that became synonymous with the term gas guzzler, after a deal to sell it to a Chinese manufacturer fell apart.
The buyer, Sichuan Tengzhong Heavy Industrial Machines, said in a statement that it had withdrawn its bid because it was unable to receive approval from the Chinese government, which was trying to put a new emphasis on limiting China’s dependence on imported oil and protecting the environment.
Tight financial markets also hurt the deal. When the commerce ministry did not bless the transaction, the well-capitalized Chinese banks became reluctant to lend money to Tengzhong, even though it tried to set up an overseas subsidiary to buy Hummer. That left Tengzhong trying to borrow money from Western banks that have been curtailing their lending even to established borrowers, much less a little-known company from western China.
A spokesman for Hummer, Nick Richards, said G.M. had no specific timetable for completing its wind-down, but left open the possibility that G.M. would be open to new bids.
“We just reached this decision today, so we’re just beginning the process,” Mr. Richards said. “Typically, winding down a brand can take several months. If there are viable alternatives for part of the brand or all of the brand during the process, we’ll consider them.”
G.M. had been trying to sell Hummer for nearly two years, and struck a preliminary deal with Tengzhong in June. The two companies had planned to complete the $150 million deal by the end of January, then delayed the deadline by a month in the hopes of receiving approval from China.
“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,” John Smith, G.M.’s vice president for corporate planning and alliances, said in a statement. “G.M. will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”
Over the years, Hummer shifted from a brawny status symbol that drew attention on the road into an automotive pariah. Gov. Arnold Schwarzenegger of California helped the brand become popular and once owned a fleet of Hummers, but more recently, he described the brand as prime evidence of the Detroit automakers’ failings.
Still, dealers and fans were optimistic that Hummer could live on.
They expected to see smaller, more fuel-efficient models introduced under Tengzhong that would help the brand “get away from people just thinking it was a big gas hog,” said Danny Hill, the general sales manager at Classic Hummer in Grapevine, Tex.
“It is a great, great vehicle that really does anything you want it to do,” Mr. Hill said. “It had a great concept to it. It’s a real shame that it’s going away, because the people who own Hummers, they just love them.”
It was the third time since G.M. emerged from bankruptcy protection last year that a deal to sell one of its unwanted brands collapsed. The company is shutting down Saturn, and it began to halt operations at Saab after a deal with Koenigsegg in Sweden was called off. G.M. later reached an agreement with a Dutch company, Spyker Cars; that deal was completed on Tuesday.
G.M. is also closing Pontiac, but it never tried to sell that brand. The carmaker is focusing on its Buick, Cadillac, Chevrolet and GMC brands as it works to recover from bankruptcy.
G.M. said it would honor Hummer warranties and provide service and parts to Hummer owners worldwide. Hummer has nearly 400 dealerships globally, including 153 in the United States.
The announcement was celebrated by environmentalists, who have long pressed G.M. simply to kill the brand, which was born from military Humvees in 1992. G.M. acquired it in 1999.
“Closing Hummer simultaneously improves the health of G.M., China and the planet,” said Daniel Becker, director of the Safe Climate Campaign at the Center for Auto Safety in Washington. “Hummer should rest in pieces.”
About 3,000 jobs in the United States could be affected by the shutdown, including positions at G.M. and dealerships. A factory in Shreveport, La., that builds the Hummer H3 and H3T, as well as other G.M. trucks, already was scheduled to close by 2012.
The larger H2 was built for G.M. by A. M. General in Mishawaka, Ind., until December, when production was temporarily halted to allow the sale process to conclude.
Mr. Richards said Hummer dealers in the United States had about 2,500 vehicles in their inventories. In January, the brand sold just 265 units in the country. Hummer sales plunged 67 percent in 2009, to a total of 9,046.
The deal would have made Tengzhong the first Chinese company to sell vehicles in North America, though it planned to keep Hummer’s operations in the United States.
“Tengzhong worked earnestly to achieve an acquisition that it believed to be a tremendous opportunity to acquire a global brand at an attractive price,” Tengzhong said in its statement.
Its bid for Hummer was an audacious move, particularly by Chinese standards. The company is privately held, so it did not have the connections that many government-owned enterprises enjoy; by contrast, government agencies own part or all of China’s 10 largest automakers.
Tengzhong concluded the initial deal with G.M. in June and was supposed to close the deal by September. Some in Detroit were furious that the Chinese review process then dragged on for eight months, during which the American auto industry showed few signs of recovery and the potential value of Hummer continued to decline.
The timing of Tengzhong’s bid was bad from the beginning. High oil prices in the summer of 2008 led to a broad move by the Chinese government to improve energy efficiency and limit oil imports.
Keith Bradsher contributed reporting from Hong Kong.
http://www.nytimes.com/2010/02/25/business/25hummer.html?hp
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Noooo they cant what will moms drive their kids to school in?
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Noooo they cant! What will moms drive their kids to school in while talking on their cell phones paying no attention to their driving and putting their makeup on in the visor mirror while drinking Panera coffee?
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Noooo they cant! What will moms drive their kids to school in while talking on their cell phones paying no attention to their driving and putting their makeup on in the visor mirror while drinking Panera coffee?
hahahahha so they do that in the States as well
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hahahahha so they do that in the States as well
Yep! I think America and Australia are the same except for the super deadly spiders, snakes and everything else there.
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Yep! I think America and Australia are the same except for the super deadly spiders, snakes and everything else there.
hehe speaking of that just got back from a trip to the beer fridge out the back and saw a massive red back next to it could not step on it as I was in bare feet lol
I really should learn as I was in bare feet when I was bitten by a brown snake a few years ago.... that was not fun.....
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This is terrible news. Even at my advanced age, I still like Hummers, ;D though since Bunny hit 57, I'm lucky if I get to...
Crap. This trip down memory lane has just ruined my day :'(
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Well, I guess GM has the same problem all the rest of us have......... As soon as you get married and all the hummers go away!
*That was a blowjob joke, people!
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Well, I guess GM has the same problem all the rest of us have......... As soon as you get married and all the hummers go away!
*That was a bl...ob joke, people!
OK, that didn't take long . . . . >:(
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Well, I guess GM has the same problem all the rest of us have......... As soon as you get married and all the hummers go away!
*That was a blowjob joke, people!
It loses a little something when you have to draw a picture, no? ;D
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Nothing better than a HUMMER Down Under!
(http://www.cffc.navy.mil/olf/greyhawks_e2c.jpg)
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Well, I guess GM has the same problem all the rest of us have......... As soon as you get married and all the hummers go away!
*That was a blowjob joke, people!
You are a sketch artist extraordinaire......
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Guys this is nothing more than natural selection.
P.S. And the winner is JEEP!!!
(http://i68.photobucket.com/albums/i28/WhiteFeather93/l_270a64e88c6647548abb56f0fcdddb-1.jpg)
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Guys this is nothing more than natural selection.
P.S. And the winner is JEEP!!!
(http://i68.photobucket.com/albums/i28/WhiteFeather93/l_270a64e88c6647548abb56f0fcdddb-1.jpg)
;D
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hehe speaking of that just got back from a trip to the beer fridge out the back and saw a massive red back next to it could not step on it as I was in bare feet lol
I really should learn as I was in bare feet when I was bitten by a brown snake a few years ago.... that was not fun.....
Massive redback?? hmmmmm phil
Red-back Spider
Identification
Redback spiders (Latrodectus hasselti) belong to the Family Theridiidae, which is found worldwide. The notorious Black Widow Spider (Latrodectus sp) of the United States is a close relative of the Redback Spider, and only differs in appearance by the absence of a red dorsal stripe. Other species of Latrodectus occur in Africa, New Zealand (the Katipo), the Pacific Islands, Europe and North and South America.
Female Redback Spiders are black (occasionally brownish) with an obvious orange to red longitudinal stripe on the upper abdomen, with the red stripe sometimes being broken, and an "hourglass" shaped red/orange spot on the underside of the abdomen. Juveniles have additional white markings on the abdomen. Females have a body about the size of a large pea and slender legs.
The males' red markings are often less distinct. The body is light brown with white markings on the upper side of the abdomen, and a pale hour-glass marking on the underside.
Size range
1 cm (female); 3 mm - 4 mm (male)
One too many cooper beers huh, I did warn you about that sewerage!
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Yep! I think America and Australia are the same except for the super deadly spiders, snakes and everything else there.
They got bigger jackrabbits than us, too. ;D
(http://www.royalpetclub.com/blog/wp-content/uploads/2010/01/541447Australian-Kangaroo-Posters1.jpg)
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They got bigger jackrabbits than us, too. ;D
(http://www.royalpetclub.com/blog/wp-content/uploads/2010/01/541447Australian-Kangaroo-Posters1.jpg)
CROIKY!!! ;D
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Massive redback?? hmmmmm phil
One too many cooper beers huh, I did warn you about that sewerage!
yep....
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Honestly, they ruined the brand with the H2 and insulted themselves with the H3 variants. They should've remained a high integrity niche vehicle.
-RJP
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Honestly, they ruined the brand with the H2 and insulted themselves with the H3 variants. They should've remained a high integrity niche vehicle.
-RJP
I agree I would love to get an Ex Mil H1 however once they yuppied the H2 and H3 it was over for me + they want over 100K still for the H2's here and the H3 is just an over priced suburban with a body kit ;)
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I know some unhappy H2 buyers....can you say GM transmission.
It really wasn't a Hummer when it was an H2....I much prefer our Excursion...a real diesel road beast. Load it up and set the cruise to 80-85 when possible without damaging the engine or drivetrain by overstressing it. I will drop to 70-80 when pulling a trailer with a few four wheelers and gear...lots of wind resistance and mileage drops to around 14 or so.
Yep Rob, you are right. The original or nothing.
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You are a sketch artist extraordinaire......
Raunchy comedy and political commentary all in one! ;D
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Raunchy comedy and political commentary all in one! ;D
Ever notice how those 2 are linked ?
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I'm doing a google image search for that one demotivational poster that shows either an H2 or H3 with a broken tie rod...the front tires are pointing in different directions. LOL!
I did find this one though:
(http://www.randomfunnypicture.com/pictures/1903hummer_h2-only-looks-tough.jpg)
I found another one, but still not the one I am looking for...DARN! :
(http://questionabletopic.files.wordpress.com/2009/11/1214177248799.jpg)
Anywhooo....when you do a google image search for "demotivational posters hummer"....hmmn...uhh...you can get some interesting results.
:o
I did stumble upon this one, which like most demotivational posters, it does have that kernel of truth which kinda does strike a nerve :
(http://www.kchristieh.com/blog/images/conformity.jpg)