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

Filed under: SUV, China, Government/Legal, Hummer

As Chinese media outlets continue to voice derision over GM’s agreement to sell its unwanted HUMMER division to Sichuan Tengzhong Heavy Industrial Machinery Co., there are real questions as to whether or not the Chinese government will even approve of the purchase.

State-run media outlet Xinhua News Agency has suggested that Tengzhong’s interest in HUMMER may be little more than a publicity stunt, saying, “It couldn’t achieve this result (of raising its profile) even if it spent $100 million on advertising.” Commenting on Tengzhong’s deal to purchase HUMMER, China’s Minister of Commerce Chen Deming said:

We hope Chinese companies learn more about international market rules and development trends in their industries and make prudent investments.

While none of that sounds particularly promising, it doesn’t necessarily mean the deal won’t be approved, and HUMMER CEO Jim Taylor is reportedly moving forward with the automaker’s future plans as it looks for a new location outside GM’s corporate headquarters in the Renaissance Center to call home. According to the Nashville Business Journal, HUMMER could stay in the Detroit area or possibly join Nissan by taking root in Tennessee.

[Sources: Autocar, Nashville Business Journal]

Critics from China berate proposed HUMMER sale, rekindled automaker could be based in Nashville originally appeared on Autoblog on Thu, 25 Jun 2009 10:26:00 EST. Please see our terms for use of feeds.

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Critics from China berate proposed HUMMER sale, rekindled automaker could be based in Nashville