Filed under: SUV, GM, Hummer, Earnings/Financials, Off-Road

Although it has been evident for some time that General Motors‘ sale of its Hummer brand to Sichuan Tengzhong Heavy Industrial Machines Co., Ltd., we didn’t expect for word to come down today that the negotiations are dead and the brand will be wound down. Unfortunately, judging by a press release just issued by GM, that’s exactly what will be happening. According to John Smith, GM’s vice president of corporate planning and alliances,

“One year ago, General Motors announced that we were going to divest Hummer, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for Hummer along the way, and we are disappointed that the deal with Tengzhong could not be completed.”

As we learned from the Saab sale saga, GM announcing that the brand will be wound down does not completely extinguish hope for another buyer to slip in in the 11th hour, but it does seem highly improbable that a new party will pick up where the negotiations with China’s Tengzhong left off.

In the statement available after the jump, GM does not specify what killed the planned sale of the brand, but rumors in recent months suggested that the Chinese government was not keen to sign off on the deal. At the moment, it is unclear what will happen to Hummer’s H2 and H3/H3T models, but it is likely that the tooling and manufacturing rights will be sold off to other companies. It is also unclear how many employees will be out of work as a result of the closure.

As with the wind-down of its Saturn and Pontiac brands, GM has pledged to honor Hummer warranties and continue to supply service and parts.

[Source: General Motors | Image: Scott Olson/Getty]

Continue reading BREAKING: GM announces Hummer sale cannot be concluded, brand to be wound down

BREAKING: GM announces Hummer sale cannot be concluded, brand to be wound down originally appeared on Autoblog on Wed, 24 Feb 2010 15:16:00 EST. Please see our terms for use of feeds.

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BREAKING: GM announces Hummer sale cannot be concluded, brand to be wound down

Filed under: SUV, Government/Legal, GM, Hummer, Off-Road

General Motors has reached an agreement to offload Hummer onto China’s Sichuan Tengzhong Heavy Industrial Machinery, with Tengzhong taking an 80 percent stake and a private investor consuming the rest.

Details on the deal (available in the press release after the jump) include Hummer contacting vehicle manufacturing from GM, with the General’s Shrevport and Mishawaka plants continuing to produce vehicles through June of 2011, with a possible extension until 2012. A recent report says the sale will net GM around $150 million, although the transaction still has to be approved by both U.S. and Chinese regulatory agencies, which could come later this year or in early 2010.

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.”

[Source: GM | Photo by Scott Olson/Getty]

Continue reading BREAKING: GM officially sells Hummer to China’s Sichuan Tengzhong

BREAKING: GM officially sells Hummer to China’s Sichuan Tengzhong originally appeared on Autoblog on Fri, 09 Oct 2009 13:13:00 EST. Please see our terms for use of feeds.

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BREAKING: GM officially sells Hummer to China’s Sichuan Tengzhong