Letters and Blogs

Hummer a good ad for Tengzhong

A lot of people, even some experts, are talking about whether it is a good idea for Tengzhong to acquire GM's Hummer. The private company has acquired three State-owned enterprises in its short, four-year-old history. So people managing the company are not stupid. On the contrary, they are quite talented.

According to reports, Tengzhong could pay anything between $100 million and $500 million for the Hummer deal. Since GM is bankrupt, Tengzhong will have the upper hand in fixing the price. It can even put it below $100 million. And with the money it "saves", it can buy useful technologies for less than the amount it would use to develop them on its own.