The other day one of China’s private enterprises – the corporation for the production of heavy machinery «Tenchzhun» of Sichuan province announced that a tentative agreement to buy the famous brand «Hammer» from the American corporation GM.
June 1, GM filed in the New York Court of a petition for protection from bankruptcy. 2 June, it issued a statement of sale of its famous brand «Hammer» to Chinese corporations «Tenchzhun». We offer you the story of our correspondents accredited in the United States, on this subject.
Special correspondent of MRC in the United States Han Xu said:
«In its statement, the representative of the corporation GM noted that the transaction is inevitable after the strategic brand assessment of « Hammer » and restructuring of the corporation. According to U.S. media, selling of cult brand «Hammer» is a part of a comprehensive restructuring of the corporation, and this transaction is beneficial for both sides ».
Corporation “Tenchzhun” is located in Chengdu of Sichuan Province. It is one of the leading private companies in China in the production of heavy machinery, machines and mechanisms for the construction of roads, bridges and power facilities. Press Representative of the corporation, Mrs. Zhao Syaolu described the purchase of «Hammer»:
«Corporation« Tenchzhun » is one of China’s major industrial corporations. This transaction will expand the scope of the enterprise ».
Zhao Syaolu also reported that between the corporation «Tenchzhun» and GM signed a memorandum of understanding: «Tenchzhun» have the right to use the brand «Hammer», and also the company will operate in the same mode. Under the prior agreement of the headquarters and production structure of the company Hummer will still remain in the United States. It was expected that the transaction will be concluded in the third quarter of this year. After the conclusion of the transaction in the United States will be kept more than 3 thousand new jobs
U.S. President Barack Obama plans that the new General Motors will focus on producing energy-efficient products. A car «Hammer» consume too much fuel. This caused sharp discontent in public. In addition, in 2008, oil prices rose sharply. General Motors sold a total of 27 thousand Hammer on the world market. Sales volume fell by 50% compared to 2007. During the first four months of this year sales «Hammer» in the United States also dropped sharply over the same period last year.
Press Representative of Automobile Corporation «Tenchzhun» reported that the company invests in the development of product brands «Hammer» to produce more energy efficiency vehicles. She said:
«Industrial Company« Tenchzhun »investing in the development and manufacture of automobiles« Hammer »using energy-saving technologies. Our engineers lead the development of data for several years. «Hammer» is one of the famous brands of the world. We are confident that, thanks to scientific and financial support, the company «Tenchzhun» win the world market ».
