Report: Chengfeng in Talks With AM General to Form Hummer Joint Venture
December 15, 2008
After months on the market, it looks as though plans may be shaping up on a deal for the purchase of General Motors' Hummer brand. According to a report from Beijing's Jinghua newspaper, China's Hunan Chengfeng Motor Company is in talks with Indiana-based AM General over a possible joint purchase of ailing Hummer.
"We never quit talks on acquiring the brand," said Chengfeng representative Zhengchu Chen in an interview with Jinghua. "But now instead of doing it alone, we decide to form partnership with AM General to reduce risk as the global economy falters. We have to always adjust our plan to market conditions."
Chen was referring to a report from Reuters back in August that, citing an unnamed source, said "Changfeng has decided not to proceed with the talks after a tour of Hummer's U.S. production facility, as it saw only limited potential for it to market the vehicle." Chengfeng originally expressed interest in acquiring Hummer back in March.
AM General is a heavy vehicles manufacturer that originally built the HMMWV for the American military beginning in 1983. The company later began producing and selling civilian versions, and in 1999, General Motors bought exclusive rights to the Hummer name and began selling the H2, which is built on the same platform as the Chevrolet Suburban. AM General and Chengfeng are talking about buying back Hummer and creating a joint-venture company in the U.S. with Hummer as a stand-alone brand, according to Chen. He said that, for now, production will continue to focus on the U.S. market, Hummer's largest.