Tuesday, June 2, 2009

Axe falls on Hummer, it goes to the Chinese

Reports are that the Hummer division of GM has been sold. A Chinese buy has been named for Hummer. In a deal that amounts to GM just getting pennies on the dollar of what the company is worth, this is apparently is a done deal. GM has struggled to survive and even filed for bankruptcy itself just yesterday.

The US government is part owner of a company called GM now. It is a majority holder of the company, and this move is unprecedented for the US Government to step in and actually be known as an owner. I never knew the US to be in the auto business before and don't know if taxpayers wanted to board this incredibly sunk ship of GM, but here we are thanks to President Obama. Hey, maybe they'll name an upcoming model after him, 'The Obama'. A built to last, piece of Americana. Debate is raging whether or not this move was communistic here in the US. Stay tuned, it should get very interesting. Why GM? and why did the US 'buy' them into bankruptcy?

Ford Motor Company has got to be scratching it's head at what is going on here. It's chief competitor now has an owner with very deep pockets, Uncle Sam. This story is getting crazier as the days go on.

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