Motoring News » GM

HUMMER Sale to Tengzhong Cannot be Completed

eagle6 — Fri, 26 Feb 2010 12:07:36 +0000

General Motors today announced that Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to complete the acquisition of HUMMER. As a result, GM will begin the orderly wind-down of the HUMMER operations.

“One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed,” said John Smith GM vice president of corporate planning and alliances. “GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”

GM will continue to honor HUMMER warranties, while providing service support and spare parts to current HUMMER owners around the world.

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GM Statement on SAAB

eagle6 — Fri, 08 Jan 2010 16:24:40 +0000

GM today confirmed it has selected AlixPartners to supervise the orderly wind down of Saab, and has requested approval of the selection by the appropriate authority in Sweden. The use of a wind down supervisor is a commonly-used process in Sweden and works in the interest of the shareholder.

The wind down process is expected to take several months, and will ensure that employees, dealers and suppliers are adequately protected. As stated previously, Saab customers can be assured that warranties will continue to be honored and that service and spare parts will continue to be available.

GM also confirmed that it has received several proposals for Saab and is continuing to evaluate these proposals. This evaluation is not affected by the appointment of AlixPartners.

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GM Builds First Lithium-ion Battery for Chevrolet Volt

eagle6 — Thu, 07 Jan 2010 18:40:52 +0000

Exactly three years since the day the Chevrolet Volt concept car debuted, GM today manufactured the first advanced lithium-ion battery for a mass-marketed electric vehicle at GM’s Brownstown Battery Pack Assembly Plant.

‘This is an important milestone for GM – and a critical step in bringing the Chevrolet Volt to market,’ said GM Chairman and CEO Ed Whitacre.

GM announced last August a $43-million investment to prepare the 160,000-square-foot, landfill-free facility for production of lithium-ion battery packs for the Volt and other electric vehicles with extended-range capabilities. The plant is part of a wholly-owned subsidiary of General Motors called GM Subsystems Manufacturing LLC.

In just five months, the Brownstown plant was converted from an empty facility to a production-ready battery manufacturing site. New machinery and specialized equipment have been installed and three primary assembly areas have been completed: battery module pre-assembly, final assembly and the battery pack main line.

The Volt’s battery pack is made up of multiple linked battery modules and more than 200 battery cells. The initial assembly area is where the prismatic-shaped cells are processed and installed by state-of-the-art flexible automated equipment into modules, which are then delivered to the battery pack main line.

The battery pack main line area features an Automated Guided Cart (ACG) system that includes operations for thermal and electrical assembly, along with quality and dimensional checks. The main line is also where battery pack final testing, verification and packaging for shipment take place.

Initial battery production at Brownstown will be used to validate the plant’s equipment and processes, and batteries will be sent to GM’s Global Battery Systems lab in Warren, Mich., for testing. This spring, GM will begin shipping batteries to GM’s Detroit-Hamtramck plant, the assembly location for the Volt, for use in production validation vehicles.”

(Via .)

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GM Board Decides to Retain Opel/Vauxhall

eagle6 — Thu, 05 Nov 2009 16:40:57 +0000

DETROIT – Given an improving business environment for GM over the past few months, and the importance of Opel//Vauxhall to GM’s global strategy, the GM Board of Directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest.

‘GM will soon present its restructuring plan to Germany and other governments and hopes for its favourable consideration,’ said Fritz Henderson, president and CEO. ‘We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.’

On a preliminary basis, the GM plan entails total restructuring expenses of about €3 billion, significantly lower than all bids submitted as part of the investor solicitation. GM will work with all European labour unions to develop a plan for meaningful contributions to Opel’s restructuring. While Opel continues to outperform against its viability plan assumptions and immediate liquidity is stable, time is of the essence.

‘While strained, the business environment in Europe has improved.’ Henderson said. ‘At the same time, GM’s overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured. We are grateful for the hard work of the German and other EU governments in navigating this difficult economic period. We’re also appreciative of the effort put forward by Magna and its partners in Russia in trying to reach an equitable agreement.’

Henderson added that GM also hopes to build on its already significant business in Russia and to resume work directly with GAZ to contribute to both the modernisation of its operations and the joint development of the Russian vehicle market on a mutually attractive basis. More details on the next steps in the restructuring will be provided as the plans and developments warrant.

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Hummer Sale Confirmed

eagle6 — Sun, 11 Oct 2009 22:11:09 +0000

General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), today announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM’s premium all-terrain HUMMER brand.

Under the terms of the definitive agreement, the buyer will acquire the ownership of the HUMMER brand, trademark and tradenames, as well as specific IP license rights necessary for the manufacture of HUMMER vehicles. The buyer will also assume the existing dealer agreements relating to HUMMER’s dealership network.

Tengzhong intends to purchase HUMMER through an investment entity, in which it will hold an 80 percent stake. Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena, will hold the remaining 20 percent stake. Financial terms of the agreement were not disclosed.

The transaction is subject to customary closing conditions and regulatory approvals and/or review by government agencies in the U.S. and China. The completion of the definitive agreement enables the companies to continue and further the overall regulatory review process.

‘HUMMER is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and HUMMER,’ said Fritz Henderson, GM President and CEO. ‘For HUMMER, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future.’

Under the agreement, HUMMER would contract vehicle manufacturing, key components and business services from GM during a defined transitional time period. For example, GM’s Shreveport assembly plant would continue to contract assemble the H3 and H3T and AM General’s Mishawaka assembly plant will continue to assemble the H2. Both facilities will produce the specified vehicles until June 2011, with an optional one year extension until June 2012. The deal is expected to secure more than 3,000 jobs in the U.S. related to the sale and manufacturing of HUMMER vehicles.

HUMMER will continue to be managed by members of its existing leadership team including James Taylor, who will remain in his current role as HUMMER’s chief executive officer. Prior to joining HUMMER, Taylor was General Manager of Cadillac where he oversaw a reinvigoration of the brand, leading key innovations in design and technology as well as the development of new models.

‘We are fortunate to have a partner who understands and recognizes the importance of continuing investment in HUMMER’s heritage as a U.S.-based and branded company with a view toward capitalizing on global opportunities,’ said Taylor. ‘Backed by a privately owned and well-capitalized company, we are going to be able to focus on providing customers with more efficient models that deliver HUMMER’s promise of authentic, purpose-built design and engineering.’

Once the transaction is complete, HUMMER will become the first automaker to offer an alternative fuel powertrain in every model, with the addition of E85 FlexFuel capability in the 2010 H3 and H3T. HUMMER is also in the process of obtaining emissions certification for a diesel H3 that will be introduced in markets outside of North America. The brand’s future product development will focus on improving efficiency and performance in current HUMMER models with alternative fuel powertrains, more efficient gas engines, 6-speed transmissions and diesel engines.

‘This transaction marks an exciting step for both Tengzhong and HUMMER, as we invest in a business that has significant opportunity in the U.S. and around the globe,’ said Yang Yi, chief executive officer of Tengzhong. ‘We are excited about some of the initiatives already underway at HUMMER that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel-efficient vehicles to meet not only future regulations but also customer expectations.’

Credit Suisse is acting as exclusive financial advisor and Shearman & Sterling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.”

(Via .)

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