Will Hummer be around much longer?
After the good news several weeks ago for General Motors and their Hummer brand that GM had found a buyer, the news is not as favorable currently. According to an article on MSNBC.com, the company, Tengzhong Heavy Industry Machinery Corp., that was planning to take over Hummer is having problems doing so with the Chinese government. The government, which has a lot of control through regulations, does not like the acquisition of the Hummer because its’ “gas-guzzling vehicles conflict with Beijing’s conservation goals.” The company must get the government’s approval in order for their to be a deal. Another problem is that currently Tengzhong that makes construction machinery, such as cement mixers and tow trucks, has the experience to create more fuel-efficient Hummers and get this company back on its feet. Supposedly, this acquisition would save 3000 jobs in the U.S., and the Hummer headquarters and manufacturing will stay in the United States. Tengzhong says that is will “invest in research to create more fuel-efficient Hummers.”
This is obviously not good news for Hummer and the 3000 workers here in the U.S. Hopefully, this can work. It’s crazy how much the government can control. Scary actually. I’m not a huge fan of the Hummer, but as I’ve said before I hate to see any company go away completely.