Expert Profile
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Denis Gihan
Partner of Citiheart Shanghai Trading Co.
Apparel & Fashion industry
January 2008 – Present
Partner of Offshore Development
Information Technology and Services industry
September 2006 – Present
Founding Partner of Dailymotion
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Shanghai GM, a joint venture between Chinese automaker Shanghai Automotive Industry Corporation and the US' General Motors, ranked the first among Chinese carmakers in terms of November sales, according to the latest statistics released by the China Association of Automobile Manufacturers (CAAM). The combined sales of China's top 10 carmakers in November reached 492,100 units, taking up 65 percent of the country's total. The 10 carmakers are Shanghai GM, FAW Volkswagen, Shanghai Volkswagen, BYD Auto, Dongfeng Nissan, Beijing Hyundai, Chery Auto, Geely Auto, FAW Toyota and ChangAn Ford Mazda.
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| Chinese Company In Sichuan To Acquire GM抯 Hummer |
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China's Tengzhong Heavy Industrial Machinery Co. in Sichuan plans to acquire General Motors' Hummer brand, according to the US auto maker as it took another step towards downsizing as part of its bankruptcy restructuring plan.
There was no disclosure of the price of the tentative deal by either companies, but according to the documents GM has submitted to the bankruptcy court, the Hummer was worth an estimated US$500 million. According to their memorandum of understanding, Tengzhong will absorb Hummer's dealer agreements and senior management team. Also, Hummer will continue to maintain its headquarters and operations in the United States as the new leadership plans to expand Hummer's dealer network worldwide. Part of the tentative transaction is for Hummer to continue to contract vehicle manufacturing and business services from GM during the transition period, which may run up to at least 2010. "Tengzhong will expand into the premium off-road vehicle segment through the strategic acquisition, and it is catalyst for Hummer's growth in the US and around the world," the statement said. "As a globally recognized brand, Hummer can enhance Tengzhong's brand image. The deal could also benefit Tengzhong in technology advancement," said Zhu Junyi of the Shanghai Information Center's auto industry research office. However, local analysts were divided about how the deal would turn out. Critics point out that the rugged Hummer is fuel-inefficient which is one major reasons for it’s big decline in sales. For the first four months of this year, Hummer sales are down 67 percent. "Hummers consume much more fuel than average cars and don't even sell well in the US," Jia Xinguang, a senior independent auto analyst said. Hummers are based on US military vehicles that gained fame during the 1991 Gulf War - a link that fuels their macho appeal. Tengzhong, a privately owned engineering company, was established in 2005 and deals in road construction, plastics, resins and other industrial products. Hummer would be its first step into the automotive business. As a part of GM's restructuring plan, the company is also trying to sell its Saab, Saturn and Pontiac brands. It plans to focus on its Chevrolet, Cadillac, Buick and GMC nameplates in hopes of becoming a leaner, profitable car maker. The automaker said that it has 16 buyers interested in purchasing its Saturn brand, while three parties are interested in the Swedish Saab brand The Hummer deal could reportedly help GM save more than 3,000 US jobs. The transaction is expected to close in the third quarter of this year, subject to regulatory approval. GM's filing for Chapter 11 bankruptcy protection is the largest ever for an industrial company. |






