M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

Tuesday, September 29, 2009

Hummer: The Last Word

September has come and gone and I've decided that I'm tired of waiting for the Hummer "deal".  For reasons I've already stated, I don't think it will ever get done - even if both sides still say they're close to signing.  And if it ever does happen, I'm convinced it will be an awful deal for the buyer.  

Anyway, now comes the final nail in the coffin as far as I'm concerned.  A study in the Chicago journal of Consumer Research found that Hummer buyers make moral statements through their purchase of Hummer vehicles.  Those statements are patriotic and defending America and its frontier lifestyle from anti-American critics and foreigners.  Okay ... so what happens when you sell that brand to the Chinese? Gotta start looking for different customers.

Notwithstanding common sense, this deal continues to take baby-steps toward completion - a $10 million grant to set up an HQ in Michigan. There are also continues protestations from the Chinese partner that it will happen.  For my part, I've decided that I won't be saying any more about it until one of the following things happen:

1) The deal actually happens and then notwithstanding statements to the contrary about the deal saving US jobs Tengzhong Heavy relocates all the Hummer assembly operations to China; or

2) The deal actually happens and Tengzhong Heavy places a large order with AM General for H1 and H2 vehicles on behalf of an important Chinese customer.  Leave out the luxury package.  We'll just take them all in green, thanks.
Moving on.



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