GM Wants To Sell Hummer To Chinese Company

GM has come to a deal with Chinese company Sichuan Tengzhong Heavy Industrial Machinery Co. to sell Hummer.

GM Wants To Sell Hummer

GM has come to a deal with Chinese company Sichuan Tengzhong Heavy Industrial Machinery Co. to sell Hummer. Tengzhong will take an 80 apercent stake in the company, while the other 20 will go to private investor, assuming the deal is approved by Chinese and U.S. regulatory authorities later this year. Under the agreement, GM will continue to manufacture Hummers until June 2011, so jobs at GM’s Shreveport and Mishawaka plants will be preserved for a while. A possible one-year extension has also been discussed. The deal is expected to bring in $150 million for GM. Tengzhong, which only produces commercial trucks and industrial equipment, has never entered into consumer vehicles before, but according to Yang Yi, chief executive officer of Tengzhong. “We are excited about some of the initiatives already underway 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.” [via AutoBlog]

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