According to the car news website Road & Track, SF Motors, a wholly-owned subsidiary of Chongqing Xiaokang Industrial Group Co., Ltd., has signed an asset purchase agreement with Hummer H2 producer AM General and acquired AM General's civilian vehicles for US$110 million. The factory and related assets, this move is an important step for Xiaokang to enter the high-end electric vehicle market. Ductile Iron Sand Castings,Sand Casting,Malleable Cast Iron Sand Casting Product,Cast Iron Sand Casting Hebei Chunfeng International Trade Co., Ltd , https://www.cfironcastings.com
From the late 1990s to the beginning of this century, Hummer and its derivatives have always been examples of luxury car brands. Although sales are not a lot, some critics have named Hummer H2 as one of the "worst 10 models" at the beginning of this century, but the cultural mark left by Hummer to Americans is still profound. Arnold Schwarzenegger, the former governor of California and a famous Hollywood movie star, took the initiative to act as the spokesperson for H2 and became the first H2 owner of the downline. Driven by Schwarzenegger, in 2003, Hummer H2 became a hot product of the year, and the H2 model became the most sought-after gift for Christmas. However, time has passed and it has long since passed away in 2003. Today's Hummer civilian factory has also been acquired by Chinese companies and will be transformed into electric vehicle production.
According to reports, AM General, which produces civilian and military hummers, has already landed its South Bend civilian car plant in Indiana, including land, plant, plant equipment and ancillary facilities associated with the AM General civilian car plant. The $110 million price was sold to the SF Motors subsidiary of Xiaokang Industry Group Co., Ltd. The military car factory is still under the control of AM General.
According to the official website of Xiaokang, SF Motors is a high-tech automobile company dedicated to the research, development, manufacture and sale of electric smart cars. It has established its headquarters and R&D center in the US Silicon Valley, which is the most active in science and technology innovation, with the most concentrated top talents and adjacent to Tesla. There are also branches in Michigan.
Zhang Zhengping, CEO of SF Motors, said the move would save 430 jobs in the Hummer civilian car factory. Zhang Zhengping said: "SF Motors, as an emerging US company based in Silicon Valley, acquired the AMG civilian car factory belonging to the US company. We had good communication with the local government and trade unions in the early stage, and we also received strong support from them. Our electric vehicle products will be of excellent quality by maintaining an existing local management team, skilled workers and new and refurbished equipment in the future."
Don Brody, chairman of the Local Auto Union (UAW) Local 5 union, said: "We didn't think about this deal in advance, but we know that the factory has always had great difficulties in securing long-term jobs. I think this is a good thing in the long run."
It is understood that the original construction cost of the South Bend civilian car factory is 200 million US dollars, mainly used for the production of Hummer H2, but due to insufficient traction, Hummer H2 has been criticized in the industry. When General Motors declared bankruptcy in 2009, civilian Hummer became one of the first brands to be cut.
As for what kind of models will be launched at the South Bend factory, it is still unclear. Although SF Motors introduced Tesla co-founder and first CEO Martin Eberhard as strategic advisors, SF Motors did not share too much information about its concept electric vehicles, the company's official website is only "clean, Description of intelligent, high quality electric vehicles. In addition, the South Bend plant will need to undergo substantial modifications to meet the needs of SF Motors, which is expected to cost an additional $30 million. Since the factory also needs to implement the UAW's three-year union contract, it may take at least two years for the factory to actually start mass production.
It is reported that AM General was founded in 1903 and is focused on providing vehicle design, production and support to automotive customers worldwide. It has produced many famous brand models such as the civilian Hummer H2 model and the Mercedes-Benz R series model for many years, and has experienced management team and skilled industrial workers.
Xiaokang shares said that SF Motors' product positioning is the high-end electric vehicle market. The company said that a series of plans for high-end electric vehicle products, three power and intelligent technology research and development and manufacturing have been fully deployed and are progressing steadily and orderly. The company has gathered more than 200 professional elites in the world's top three electric and automotive fields led by Tang Yifan, the leader of electric drive systems and intelligent driving technology, and focuses on the development of electric drive systems and intelligent driving related technologies.
SF Motors said that SF Motors' future high-end electric vehicles are also worth looking forward to through the combination of top talent, first-class electric drive and intelligent driving technology, and the assurance of top-level factory manufacturing processes. Perhaps, in the near future, Tesla will usher in another strong opponent from China...