Article: http://www.fox8.com/news/wjw-news-hummer-local,0,2851328.story
Since 2008, the iconic Hummer sold by General Motors has been predicted to be eliminated or sold because of the decreasing demand for large SUVs and high oil prices. Now, in the midst of GM declaring bankruptcy, it has finally been announced that the Hummer will be discontinued by GM. Instead, it has been sold to a Chinese company called Sichuan Tengzhong Heavy Industrial Machinery Co. Regardless, service will still be available for Hummer owners, and parts will still be under warranty, as stated by the federal government. This brand will then be under foreign ownership, as some three thousand jobs would be saved. Other brands sold by GM, such as Pontiac, Saturn, and Saab, are also on the brink of discontinuity, although there are sixteen potential buyers of the Saturn brand.
Although the textbook talks mainly about foreign ownership of Canadian industries, this article connects to the content in the textbook in terms of foreign ownership and types of business enterprises regarding the American company, General Motors. First of all, GM is selling one of their brands to China's Tengzhong, therefore a partnership enterprise is established. GM and Tengzhong's relationship is known as a partnership enterprise because the headquarters will remain at GM, but the brand will be owned by Tengzhong, resulting in two owners operating a business firm and are liable for any debts. The foreign ownership of China and the United States also creates good market access because the Hummer will now be more popular in the Chinese market, therefore increasing exports.
Not only for the United States, but also for Canada, General Motors' recent economic struggle has been what everyone is talking about. Since the beginning of the suspicion that General Motors would endure bankruptcy, a lot of what I've been hearing are how jobs would be lost, and what they plan to do in the future. I think this was the first article I've read that spoke about how jobs are being saved because of the selling of the Hummers. Selling some of the brands is a good idea because the North American owners of those particular brands could keep their warranties on their parts, and be provided with service when needed. This foreign ownership allows this to be possible. In addition, it was also possible for the three thousand jobs being saved because the Hummer is being sold, and not discontinued.
Since 2008, the iconic Hummer sold by General Motors has been predicted to be eliminated or sold because of the decreasing demand for large SUVs and high oil prices. Now, in the midst of GM declaring bankruptcy, it has finally been announced that the Hummer will be discontinued by GM. Instead, it has been sold to a Chinese company called Sichuan Tengzhong Heavy Industrial Machinery Co. Regardless, service will still be available for Hummer owners, and parts will still be under warranty, as stated by the federal government. This brand will then be under foreign ownership, as some three thousand jobs would be saved. Other brands sold by GM, such as Pontiac, Saturn, and Saab, are also on the brink of discontinuity, although there are sixteen potential buyers of the Saturn brand.
Although the textbook talks mainly about foreign ownership of Canadian industries, this article connects to the content in the textbook in terms of foreign ownership and types of business enterprises regarding the American company, General Motors. First of all, GM is selling one of their brands to China's Tengzhong, therefore a partnership enterprise is established. GM and Tengzhong's relationship is known as a partnership enterprise because the headquarters will remain at GM, but the brand will be owned by Tengzhong, resulting in two owners operating a business firm and are liable for any debts. The foreign ownership of China and the United States also creates good market access because the Hummer will now be more popular in the Chinese market, therefore increasing exports.
Not only for the United States, but also for Canada, General Motors' recent economic struggle has been what everyone is talking about. Since the beginning of the suspicion that General Motors would endure bankruptcy, a lot of what I've been hearing are how jobs would be lost, and what they plan to do in the future. I think this was the first article I've read that spoke about how jobs are being saved because of the selling of the Hummers. Selling some of the brands is a good idea because the North American owners of those particular brands could keep their warranties on their parts, and be provided with service when needed. This foreign ownership allows this to be possible. In addition, it was also possible for the three thousand jobs being saved because the Hummer is being sold, and not discontinued.
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