M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

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Wednesday, June 24, 2009

More Signs that the Hummer Deal Will Not Happen

So, GM just announced that it will close its Shreveport, LA plant.  That's the plant that assembles the Hummer H3.  OK, I suppose that means GM and Tengzhong Heavy won't be signing much of a transition services agreement for the assembling of the H3 line.  When that line gets shut down, that will leave the Hummer division with no access to any real manufacturing assets.  That leaves one to wonder what exactly will be left for GM to sell Tengzhong Heavy.  Perhaps GM is planning on selling its rights to the brand and transferring the H1/H2 assembly contract with AM General to Tengzhong Heavy?  How will Tengzhong Heavy get from owning a brand and an assembly contract to its next generation "green" Hummer?   Looks to me like a deal about to crater.    


-bjmq

http://lawprofessors.typepad.com/mergers/2009/06/more-signs-that-the-hummer-deal-will-not-happen.html

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