Newsweek: Chinese Fear Failure with HUMMER. Really?

Mon, Jul 20, 2009

Hummer News

Newsweek is reporting Monday that Chinese officials are merely using their environmental concerns as a public excuse to not support Tengzhong’s bid for the HUMMER brand, while their real fear is international embarrassment if the brand fails.

To be clear, there has been no official statement from either of the main Chinese regulatory bodies, the National Development and Reform Commission (NDRC) or the Ministry of Commerce, other than this:

“The commerce ministry and the National Development and Reform Commission both hold a supportive attitude toward Chinese companies venturing abroad… This is not a decision for the government. It’s an active strategy for companies in the course of globalization. That’s a long-term trend.”

But could China really be worried about embarrassment when it comes to automakers? Even though HUMMER has its critics, it has equally as many enthusiasts. It’s also had more success in the United States than any Chinese auto manufacturer in history, including during the economic downturn and high gas prices in 2008.

Right now China doesn’t have any auto manufacturers that come close to the international appeal and recognition that the HUMMER brand has, even though it has over 100 auto manufacturers trying to do just that. Does it really make sense that buying a brand that already has that would be a setback for the country? We don’t think so.

One other point to remember in this whole deal is that GM isn’t shedding HUMMER because it wasn’t successful or profitable – it was both! GM’s overall operating structure is geared towards higher volume brands, and its massive debt required liquidation of some valuable assets – HUMMER being one of them.

At the Detroit Auto Show there’s an upstairs and a downstairs. The upstairs is where you have the major brands (including HUMMER) and the downstairs where the lesser known companies are (the Chinese auto brands). The photos after the jump show some of the vehicles the Chinese were showcasing downstairs, so again, when it’s suggested that HUMMER would be unappealing and potentially embarrassing asset for China, we say, “Really???”

Chinese Auto
Chinese Auto
Chinese Auto

3 Responses to “Newsweek: Chinese Fear Failure with HUMMER. Really?”

  1. BOULDERH3 Says:

    The only embarrassing thing is making Hummer part of a company that makes that yellow golf cart look alike.The Chinese have never made anything to compair to Hummer.All they make is cheep nockoffs.GMs biggest mistake is stopping production of Hummer and Pontiac.This type of management thinking is what put them under.Companys that are on top keep things that are successful and profitable.Look back at when they were on top at what type of cars they were making.When the Government take over at GM all the cars will look like golf carts.Lets drill for the oil we all know is out west and keep the cars we like.Makes you wonder whos pulling the strings.

  2. Hummer Aficionado_VT Says:

    Nothing could be more embarassing than that yellow oscar mayer weiner mobile…

  3. HummBob Says:

    LOL….Hans, you CrAcK me Up!!!!