A "green" Hummer? Surely, we jest, no? No. Despite the fact that the Hummer became the poster brand for everything not-green and wrong with American automakers, its new owners, Sichuan Tengzhong Heavy Industrial Machinery, are reportedly planning to give the new Hummer a efficiency makeover.
"We want to make a green Hummer," said Tengzhong's General Manager Yang Yi. "We think the Hummer has huge potential in emerging markets. Tengzhong and Hummer are very aware of the government's fuel-efficiency requirements. Hummer has already achieved substantial progress in this area."
According to Yang, Tengzhong wants to make Hummer into a global brand that is more environmentally-friendly and fuel-efficient, though he didn't say exactly how the company plans to do that. With Hummer sales in the U.S. down 30% through May this year, the company is looking to expand the brand to emerging markets to bolster the bottom line. Some 70% of Hummer's sales are currently in the U.S. Yang also assured reporters that Tengzhong will not remake Hummer or alter it for other markets.
"There will not be a China Hummer and a U.S. Hummer," Yang said. "There is only one Hummer."
Yang also told reporters that the company expects the Hummer deal to be done by October and that Tengzhong will not assume any of Hummer's debt. The deal still has to win approval from China's government, though. Yang also said that the company does not intend to move Hummer manufacturing to China and reports indicate that Hummer's management team will not be replaced. Yang would not say what Tengzhong paid for the ailing brand, but analysts believe the sale price to be about $100 million, significantly less than the $500 million GM originally wanted for the brand.
Source: Automotive News (Subscription required)