Tuesday, June 02, 2009

Hummer sold to the Chinese

Who said underwriting all our debt didn't get them anything?
The Financial Times - "Hummer’s sale to Sichuan Tengzhong Heavy Industrial Machinery Company will close this year, marking one of the biggest overseas acquisitions in carmaking by a Chinese group.

GM on Tuesday confirmed the sale to Tengzhong, a privately-owned producer of road, construction and energy industry equipment.

The announcement came a day after the Detroit carmaker’s landmark US bankruptcy filing and is part of its plan to shed lossmaking units and trim its operations to four core brands. GM said the sale would close by the end of the third quarter."
Remember where the "Hummer" brand came from? From the "HUMVEE," which is the main land based military troop transport of our US Army.

And the Chinese bought it. Is our debt position connected in any way with this sale. I can't prove it. Someone probably will.

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Erik said...

No worries about security on this one. The Hummer brand is no longer connected to humvees and is actually just a cooler version of the chevy tahoe or whatever it is.

The Pharisee said...

Ssshhh! I knew that....

That almost sounds though, like China is snapping up the most appetizing parts of General Motors.

We'll be seeing Chevy Trucks back on our shores as the new half ton "Mao."

Pliggy said...

Of course our debt position is connected with this sale. The Chinese government owns practically all industry in that country.

They have plies and piles of US money. Money that we gave them for their junk over many years. Money that has no value except as debt our government created through the Federal Reserve loaning it to them. In order for that money to maintain its value China has to buy our stuff with it. (Or oil from the Saudi's OPEC, and Iraq) Loaning it to us, or "underwriting our debt" means we have to give them back the money AGAIN, only this time with interest.