Intellectual Property and why selling Hummer is bad idea
Lets get it out of the way: I like Hummers. I would be happy with an H3, would like an H2, and would love to have an H1, if I had the right place to use it (my own Montana ranch). I have even considered getting an H3, with the deals in place on them right now. Full disclosure satisfied, we can forge ahead.
One of the few things that US car companies still have is good technology. There are certainly a lot of times they have not built the best cars, and they have absolutely abysmal manufacturing costs, but they still have a lot of good technology. Yes, even GM.
Selling a brand to a foreign company is asking for that technology to be used against you. Russia, India, and China are all looking for a leg up. They have low manufacturing costs, strong markets (in the case of Russia - the market is Europe) and are looking to quickly jump into the upper echelons of the global car market.
The short answer, and why I support GM pulling out of the deal which would have put Opel tech into Russian hands, is that for an American car company to sell to these nations is like a Brontosaurus being a wet-nurse for little baby T-Rex's.
I am all for global competition, but if I was running an American car company, I would be very skeptical of any sale of platforms and technology which give an area with cheap manufacturing costs the technology to compete head on with my company down the road. Tata will be doing this with Jag, Henzog with Hummer, Geely with Volvo, SAIC with Saab, and SABIC would have with Opel if that went through.
And a final note on Hummer. Another thing American car companies have often been bad at is being at the leading edge. Other than the SUV craze, which was largely started and fueled by American metal, the big 3 have been at the back of the pack. Selling Hummer now is dumb because Hummer is at a natural low. Gas prices are high, a global depression and socialist President means consumerism is at a all time low (even despised), and the military Humvee from which the brand draws its cachet is currently more associated with IED's than American military might. My advice? Keep the damn brand. Dont sell it to China for a pittance. In 20 years, like muscle cars, Rick Astley, and drive-in burger joints, it'll be back.
One of the few things that US car companies still have is good technology. There are certainly a lot of times they have not built the best cars, and they have absolutely abysmal manufacturing costs, but they still have a lot of good technology. Yes, even GM.
Selling a brand to a foreign company is asking for that technology to be used against you. Russia, India, and China are all looking for a leg up. They have low manufacturing costs, strong markets (in the case of Russia - the market is Europe) and are looking to quickly jump into the upper echelons of the global car market.
The short answer, and why I support GM pulling out of the deal which would have put Opel tech into Russian hands, is that for an American car company to sell to these nations is like a Brontosaurus being a wet-nurse for little baby T-Rex's.
I am all for global competition, but if I was running an American car company, I would be very skeptical of any sale of platforms and technology which give an area with cheap manufacturing costs the technology to compete head on with my company down the road. Tata will be doing this with Jag, Henzog with Hummer, Geely with Volvo, SAIC with Saab, and SABIC would have with Opel if that went through.
And a final note on Hummer. Another thing American car companies have often been bad at is being at the leading edge. Other than the SUV craze, which was largely started and fueled by American metal, the big 3 have been at the back of the pack. Selling Hummer now is dumb because Hummer is at a natural low. Gas prices are high, a global depression and socialist President means consumerism is at a all time low (even despised), and the military Humvee from which the brand draws its cachet is currently more associated with IED's than American military might. My advice? Keep the damn brand. Dont sell it to China for a pittance. In 20 years, like muscle cars, Rick Astley, and drive-in burger joints, it'll be back.
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