What seemed to be a good joke turns out to be as real as it gets. The North American automaker General Motors announced today that a definitive agreement was made between them and the Chinese heavy equipment maker Sichuan Tengzhong Heavy Industrial Machinery regarding the sale of the Hummer brand. The Chinese heavy equipment maker Sichuan Tengzhong will buy Hummer through an investment entity and will own 80% of the company while the rest of the 20% will be owned by Suolang Duoji, a Hong Kong investor. This news comes four months after General Motors declared that they started talking to the Chinese heavy equipment maker.
Fritz Henderson, General Motors President and CEO has stated that ``Hummer is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both General Motors and Hummer``. He continued by saying that ``For Hummer, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future``.
The Chinese company will get the ownership of the Hummer brand, specific IP license rights necessary for manufacturing Hummer vehicles as well as trademark and trade names as part of the terms of the final agreement.
Sichuan Tengzhong will also get business, key components and manufacturing services from General Motors for a transitional period of time which was not clearly specified. For example, the Mishawaka assembly plant will continue to produce the Hummer H2 until June 2011 (optionally extendable until June 2012). The same maximum date of June 2012 is available for the Shreveport assembly plant that will continue to produce the Hummer H3 and Hummer H3T .
Yang Yi, chief executive officer of Sichuan Tengzhong has stated that ``The transaction marks an exciting step for both Tengzhong and Hummer, as we invest in a business that has significant opportunity in the U.S. and around the globe``. He continued by saying that ``We are excited about some of the initiatives already underway at Hummer that we believer our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel efficient vehicles to meet or not only future regulations but also customer expectations``.
|Hummer buyer from China expanding brand's presence in America|
|GM talking with 2 out of 3 Hummer bidders|
|China is prepared to face anything|
|Pricing announced for 2009 HUMMER H3T|
|Testing the Hummer H3T|
|Hummer Mountain Rescue|
|GM helps dealers to consolidate their luxury brands|
|General Motors considers selling the Hummer brand|
|New Chery factory in Iran|
|FlexFuel engines for all 2010 Hummer models|
|Hummer H3 European Version|
|Hummer H2 with Chinese dragon theme by Vilner|
|London "art" HUMMER with wooden wheels|
|Hummer H3 Dakar Rally Prototype for Jeff Gordon 2006|
|Hummer GeigerCars H2 GT|
|HUMMER H3 E85|
|Latest||Cars & News|
|2018 Buick Enclave review|
|2017 Ford F-250 XLT Super Duty review|
|2015 Audi A8 L Chauffeur review|
|2015 McLaren P1 by MSO review|
|2015 Mercedes-Benz S63 AMG Coupe review|
|2020 Porsche Macan GTS comes to fill Macan S and Macan Turbo range|
|Suzuki Jimny is set to get competition from Jeep|
|Toyota Highlander will be available in petrol only or hybrid powertrain|
|Skoda Rapid facelift was unveiled in Russia|
|McLaren 620R is the limited edition street version of the 570S GT4|