China likely nix Hummer Deal

[Guest Tony n Terrific]

The deal for Hummer has fallen through. This will cost 3,000 American jobs. I guess the Chinese government wants to have fuel efficient cars and develope cars that offer alternative energy sources.

 

http://money.cnn.com/2010/02/24/news/compa...inese/index.htm

[dnoblett]

Old news / New news.

[a2784]

The deal for Hummer has fallen through. This will cost 3,000 American jobs. I guess the Chinese government wants to have fuel efficient cars and develope cars that offer alternative energy sources.

 

 

I am surprised it took them this long to decide that building and selling a fuel monster such as a Hummer was a losing proposition. I was starting to wonder if they had a future as a US Automobile company executive.

 

I don't saving 3,000 American jobs was ever part of the reason for the initial interest.

[a2784]

Here is an article with 3 reasons on why the deal failed. Good insight into doing business in China.

 

http://www.china-briefing.com/news/2010/02...B_news_holdings

[GDBILL]

Here is an article with 3 reasons on why the deal failed. Good insight into doing business in China.

 

http://www.china-briefing.com/news/2010/02...B_news_holdings

 

While this analysis could be potentially correct, I'd be a bit careful in taking anything Chris Devonshire-Ellis states too seriously. The man has a long, sorid history nehind him which involves recently getting booted out of China for fabricating interviews with Chinese government officials.

[chengdu4me]

According to CCTV reporting, Tengzhong Heavy Industrial Machinery never filed the official application for the business merger/acquisition which was to include a business plan and ongoing technical and material needs assessment. Further, the Minister of Blah, blah, blah stated that the deal was a bust because it was never taken beyond the talking stage by Tengzhong Heavy Industrial Machinery.

[a2784]

Here is an article with 3 reasons on why the deal failed. Good insight into doing business in China.

 

http://www.china-briefing.com/news/2010/02...B_news_holdings

 

While this analysis could be potentially correct, I'd be a bit careful in taking anything Chris Devonshire-Ellis states too seriously. The man has a long, sorid history nehind him which involves recently getting booted out of China for fabricating interviews with Chinese government officials.

Yes I was aware of this even when I posted this article. I was not aware he had gotten kicked out of China (maybe I missed this in the links/info I looked at). Here is a link with a nice summary of the incident you cite (there are many others also):

 

http://www.chinalawblog.com/2009/02/breaki...re_fabrica.html

 

I posted this link because it fit with most other explianations I had seen while being the best overall summary. I think the biggest learning from this event was get government approval FIRST before you let any word about the deal leak out. Our company lost a potential merger over this issue.

 

However thinks for pointing this out to the others about China Briefing. I should have put this disclaimer in before I posted the original link.

[Minister]

The real reason it failed is because they already toured the plant, met with the engineers, and got all of the production information that they wanted. Now that they've learned what they need to know about manufacturing and advanced engineering (milk), there's no point in buying the company (cow).

 

Please see "CCC" for reference on wholesale industrial espionage.

[a2784]

The real reason it failed is because they already toured the plant, met with the engineers, and got all of the production information that they wanted. Now that they've learned what they need to know about manufacturing and advanced engineering (milk), there's no point in buying the company (cow).

 

Please see "CCC" for reference on wholesale industrial espionage.

 

[a2784]

The real reason it failed is because they already toured the plant, met with the engineers, and got all of the production information that they wanted. Now that they've learned what they need to know about manufacturing and advanced engineering (milk), there's no point in buying the company (cow).

 

Please see "CCC" for reference on wholesale industrial espionage.

 

Edited February 26, 2010 by a2784 (see edit history)

[Minister]

The real reason it failed is because they already toured the plant, met with the engineers, and got all of the production information that they wanted. Now that they've learned what they need to know about manufacturing and advanced engineering (milk), there's no point in buying the company (cow).

 

Please see "CCC" for reference on wholesale industrial espionage.

 

 

This is why the other countries are beating us.

[Sam and Fen]

The real reason it failed is because they already toured the plant, met with the engineers, and got all of the production information that they wanted. Now that they've learned what they need to know about manufacturing and advanced engineering (milk), there's no point in buying the company (cow).

 

Please see "CCC" for reference on wholesale industrial espionage.

 

 

Very valid.

Dont know if anyone remembers but a few years ago the Chinese airforce intercepted one of our "state of the art" spy plane and forced it to land in China. The excuse given was that it strayed into Chinese airspace.

Ever wonder why they did that?

 

Edited to add:

A story that was ignored in the US press...

Last year a military cargo plane (If I remember correctly, from the UAE)

was on a refuelling stop in India on its way to China. The plane was carrying US made Harpoon missiles and this not on the offcial cargo list of the plane.... Need I say more.

Edited February 27, 2010 by Sam and Fen (see edit history)

[Urkidding]

The real reason it failed is because they already toured the plant, met with the engineers, and got all of the production information that they wanted. Now that they've learned what they need to know about manufacturing and advanced engineering (milk), there's no point in buying the company (cow).

 

Please see "CCC" for reference on wholesale industrial espionage.

 

 

It was just a matter of time (Timing)...

 

http://i47.tinypic.com/311uhbd.jpg

 

They have already done it and are putting the feelers out too!

 

Chinese Automakers - FAKE HUMMERS!