GM's Hummer sold to Chinese manufacturer
Published Thursday October 29th, 2009
Earlier this month, General Motors and Sichuan Tengzhong Heavy Industrial Machinery entered into an agreement that will allow Tengzhong to acquire the legendary Hummer brand.
General Motors is restructuring and focusing on their core brands, meaning specialty nameplates like Saab and Hummer are up for sale.
Tengzhong is one of China's largest privately-held engineering companies.
They specialize in the construction of equipment for the energy industry, as well as machines for bridge and road building. Tengzhong will wind up owning the Hummer brand, all associated trademarks, and the specific licence rights necessary to manufacture the vehicles. They will also assume existing dealer agreements relating to Hummer's dealership network.
During a transition period, Hummer production will continue at GM's Shreveport assembly plant, as well as at the AM General Mishawaka assembly plant which assembles the Hummer H2. Estimates say the deal will secure several thousand US jobs.
"Hummer is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and Hummer," said Fritz Henderson, GM President and CEO. "For Hummer, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future."
Financial terms of the agreement were not disclosed, and the transaction is still subject to closing conditions and regulatory approvals by both governments.
GM's currently sells Cadillac and Buick models successfully in China as well.
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