General Motors has finalized a deal to sell HUMMER to the Sichuan Tengzhong Heavy Industrial Machinery Company.
General Motors has finalized a deal to sell HUMMER to China's Sichuan Tengzhong Heavy Industrial Machinery Company.
While the specifics are still kind of vague, Tengzhong "will acquire the ownership of the HUMMER brand, trademark and tradenames, as well as specific IP license rights necessary for the manufacture of HUMMER vehicles. The buyer (Tengzhong) will also assume the existing dealer agreements relating to HUMMER's dealership network."
GM didn't release the purchase price, but they did say HUMMER will be owned by an investment entity that consists of Tengzhong (80%) and entrepreneur Suolang Duoji (20%).
Under the deal, GM will continue to produce HUMMERs at their Shreveport, Louisiana and Mishawaka, Indiana plants until June 2011. As a result, more than 3,000 U.S. jobs will be secured.
According to Tengzhong's CEO, Yang Yi, "We are excited about some of the initiatives already under way at HUMMER that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel-efficient vehicles to meet not only future regulations but also customer expectations."
The deal will now be "...subject to customary closing conditions and regulatory approvals and/or review by government agencies in the U.S. and China." If everything goes according to plan, GM expects the sale will be completed by the end of the year.