Changfeng, AM General in talks on Hummer bid
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"We never quit talks on acquiring the brand," said Zhengchu Chen in an interview with Beijing based Jinghua newspaper.
"But now instead of doing it alone, we decide to form partnership with AM General to reduce risk as the global economy falters, " Chen explained. "We have to always adjust our plan to market conditions."
The two sides are exploring possibilities of building a joint venture company in the U.S. and future production will continue to focus on the local market, according to Chen.
Changfeng showed its intention to buy the brand early in March but a Reuters report, citing an informed source, said in mid-August that "Changfeng has decided not to proceed with the talks after a tour of Hummer's U.S. production facility, as it saw only limited potential for it to market the vehicle."
AM General is an American heavy vehicle manufacturer based in South Bend, Indiana, best known for building Hummer. It started making High Mobility Multipurpose Wheeled Vehicles (or Humvees) for the U.S. Army in 1983 and then began to build the civilian models (or Hummers) in 1992.
In 1999, General Motors acquired exclusive ownership of the Hummer brand name and the marketing rights from AM General, but AMG still continues to manufacture the H1 Hummers for the civilian market. The H2 is GM's own version of the original Humvee, and it is built on GM's Suburban frame.
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