Chinese Hummers Just a Sign of the Times
Contrarian Profits (June 3rd, 2009) Writes:
As you’ve likely heard, a Chinese company will soon own the Hummer brand. Heh, let’s count the ways this transaction epitomizes the new economic landscape…
1. A Chinese company now owns an automaker that will build and sell cars in the U.S. – a first.
2. That company – Sichuan Tengzhong Heavy Industrial Machinery – doesn’t even make cars. For its first foray into passenger automaking, it’s chosen Hummer, perhaps the world’s most challenging and polarizing brand.
3. Business is so booming at Tengzhong HIM (its core is road construction and energy equipment) that the company will completely self-finance the deal…not one yuan borrowed from the Chinese government.
4. While neither party will disclose the price, Hummer was likely sold for a song…less than $500 million.
5. The White House is billing it as a victory: It’s “good news for the 3,000 Americans who will be able to keep their jobs, the two American plants
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