GM sells out to China

GUANGZHOU, China — General Motors has reached a preliminary agreement for the sale of its Hummer brand of large sport utility vehicles and pickup trucks to a machinery company in western China with ambitions to become a carmaker, a person with knowledge of the Chinese government approval process said Tuesday.

The Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., based in Chengdu, concluded the agreement with G.M., said the person, who insisted on anonymity.

Sichuan Tengzhong is a privately owned company, but Tuesday’s deal required preliminary vetting by Beijing officials, who retain the right to veto any effort at an overseas acquisition by a Chinese company and who give special attention to deals over $100 million.

G.M. announced the deal early Tuesday morning in Detroit but said that the memorandum of understanding would not allow it to reveal the buyer or the price. Industry analysts have estimated that the Hummer division would sell for less than $500 million.

G.M., in a blog posting, said it had seen the report regarding a Hummer buyer but could not comment on speculation.

Sichuan Tengzhong is known in China for making a wide range of road equipment, from bridge piers to highway construction and maintenance machinery. But even before the Hummer deal, the company has been moving more into heavy-duty trucks, including tow trucks and oil tankers.

Full story at:
http://www.nytimes.com/2009/06/03/business/03auto.html

The story goes on to say that GM would continue to manufacture the Hummer under license from the Chinese...we'll see how long that lasts.

It also states that the Chinese have purchased British car makers MG and Rover. Wow. Didn't know about that...

"...G.M., which will be 60 percent owned by the federal government after exiting bankruptcy, will keep four brands: Chevrolet, Cadillac, Buick and GMC."

Awesome!!

Amazing isn't it? The whole reason for GM getting in trouble was because of greed. Now they are gonna sell themselves and America out by selling Hummer to China to help them further their industry. It is a joke, everything finally caught up with us and now we are in the shit.

They are all 's.

Guess that means my pontiac lemans is more valuable just like them winchester rifles did....