GM's Hummer Deal In Two Words: Uh-Oh
And another Wale of a story: Just as production of the Hummer H3 and H3T is c oming to an end in Shreveport, LA, Kevin Wale, Prez. of GM China, says he hopes Chinese regulators will finally approve the sale of Hummer to Tengzhong.
“I’m optimistic that it’s going to happen,” Wale told the Freep reporters on the sidelines of the Automotive News World Congress in Detroit. “Tengzhong is not an established manufacturer and that’s an issue that needs to be addressed with the Chinese regulators.” Uh-oh.
Wale supposedly told the Freep “that Chinese rules prohibit inexperienced companies from entering key industries, such as the auto industry, without approval.” Baloney, and Wale probably disclosed a major sticking point. All joint ventures need to get government approval. However, the Chinese government wants its car industry with more than 100 players to consolidate to a more manageable number. Beijing wants to see four big ones and four smaller ones. What Beijing definitely doesn’t want is more car manufacturers. So instead of saying outright “no,” Beijing is letting the deal get entangled in red tape.
Wale said they met with local government officials last week and found them supportive. Uh-oh. They need to meet the central government. The locals are always supportive of new business. The matter is stuck with the Commerce Ministry in Beijing – No.2 Dong Chang’an Avenue,Beijing China (100731)
Also according to the Freep, Ed Whitacre indicated that the Hummer deal faces a Jan. 31 deadline to close. “As far as we know, it’s proceeding like it should proceed,” the Freep is quoting Whitacre. As far as we know? Uh-oh again.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Nope, AccAzda, it's the picture of a wedding in Tianjin, China.
Wishful thinking from a GM employee: What if Uncle Sam placed an order for H3 and H3T trucks and dispatched them pronto as part of the Haiti relief efforts? Regarding the sale of the other GM brands, IMO, GM did what its detractors said it should do - reduce brands. Now, should they have just closed them all down ala Oldsmobile at high costs? Or should they have attempted to sell the brands (excluding Pontiac)? Most business people would try to sell an asset.
Why would Haiti want H3. There are better, more fuel efficient crs on the market.
What will douchebags drive now? Hummer could have been a Jeep or even Land Rover competitor before GM screwed up the marketing and made it into the Douchemobile of choice.