GM has officially announced they’ve reached a tentative agreement to sell Hummer to China’s Sichuan Tengzhong Heavy Industrial Machinery Company.
GM has officially announced they've reached a tentative agreement to sell Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery Company.
Once finalized, the agreement will transfer the Hummer brand, management team, and dealership network to Sichuan Tengzhong. For the time being, GM will be contracted to build Hummers at their domestic assembly plants while providing "key component and material supply" assistance. This effectively secures more than 3,000 US jobs and allows Hummer to continue operations without any significant production delays or management shakeups.
According to Tengzhong's CEO, Yang Yi, "The HUMMER brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing HUMMER to innovate and grow in exciting new ways under the leadership and continuity of its current management team." He added that, "We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S."
Despite Yi's US-focused statement, Sichuan Tengzhong has plans to rapidly expand Hummer's dealership network in China and the Middle East.
While many of us likely have our doubts about the brand's future with a Chinese manufacturer of road and bridge construction equipment, the decision to keep Hummer's management and engineering teams seems like a wise choice given the alternative.
Although GM declined to release the final purchasing price, they did state that they hope to have the transaction completed by the end of the third quarter.