Few in China knew the private company Sichuan Tengzhong Heavy Industrial Machinery (STHIM) until it released a deal to buy Hummer from American General Motors in June. STHIM became the center of the spotlight since then in China.
Some background knowledge about Hummer: the civilian off-road vehicle was derived from the military M998 High Mobility Multipurpose Wheeled Vehicle (Humvee) by AM General. The model was criticized by many mainly for its poor fuel economy. Due to the soaring price of crude oil, the sale of Hummer dropped from ~82k in 2005 to ~500 in the first five months of this year. Hummer is not the American military’s Humvee and China does not lack military multipurpose vehicle technology since Dongfeng Mengshi developed the People's Liberation Army's HMMWV in 2002, which became active in service in 2006.
According to the contract, Tengzhong will only obtain ownership of the brand while keeping the management and factory in US to save about 3000 jobs. The transaction hasn't been approved by both Chinese and US regulatory agencies and many believe that the bid will probably be blocked by the National Development and Reform Commission (NDRC, a Chinese government agency). You can also read about this deal on Google News.
What do Chinese think about this business deal online? Sina has a series of reports and experts' opinions on the sale with over 25k comments in the commenting area. I don't have time to translate all of them but the following are what I think is representative of the first few pages：
Anonymous mobile user:
People who drive Hummer are insane. This garbage vehicle burns ten times more fuel than average [sarcasm]. I felt disgusted every time I see a Hummer.
1968lozi from Yiyang, Hunan:
[Tengzhong is] collecting garbage.
Willseesoon from Shanghai:
Classic American garbage and they [Tengzhong] treat it like a jewel. How pathetic?
steven_1296 from Shanghai:
No government subsidy should be given. Let them buy with their own money.
Mobile user from Hubei:
Hope they not only buy the brand and licenses but also the technologies.
Mobile user from Zhejiang:
This is a publicity stunt by STHIM. Tengzhong, don't overdo it to piss off Chinese people.
比来比去 from Beijing:
We worked, we paid and we fed Americans with our blood and sweat!
hanfeiyu from Jiangsu:
150 millions USD to buy a brand? Is that helping US to solve its unemployment?
wuzhongquan777 from Xi'an, Shanxi:
US recently placed tariff on Chinese tires, installed inspection on Chinese seamless steel pipes, and these traitors sent 800-2000 millions USD to America only for a brand? I hate it so much. Taxation department should inspect how much tax they evaded. Even though they paid with their own money, Tengzhong should take certain level of social responsibility.
If we don't block the deal ASAP, it will definitely be passed when Obama comes to China in November. We should boycott Tengzhong together.
adongdong222 from Shanghai:
BYD bought Qinchuan to start making cars so it's normal for Tenzhong to buy Hummer too. They are just as crazy as the Automobile Insane Li Shu-Fu. BYD wouldn't make Flyer as their flagship and Tengzhong wouldn't make H2, H3 as their flagship either. Hummer sedan will be the focus. Hummer is a Chinese brand now.
m1010662581 from Sichuan:
It's worth it if the assembly line is moved to China. Senior management team and PR department can be left in US, in order to reduce the political pressure from both sides to minimum.
ans88 from Hebei:
Besides mysterious owner and mysterious funding, the company is changing its boss secretly. I seriously doubt the funding is legal. Is there any money laundering involved?
Xcdvbf from Hubei:
I don't care what the reason this SB company has for buying Hummer, the [money-sucking] black hole. I only want to know where its 800 to 2000 million funds comes from and which bank swallowed the poison pill.
花风源 from Chengdu, Sichuan:
China should have its own ICAC-like agency to monitor capital flow.
Mobile user from Shanxi:
Market economy, free development, all bulls**t.
Image Credit: Sina.com
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