America To China: GM Sells Hummer To A Chinese Company!
As a part of its downsizing plans, GM has sold its Hummer brand to a chinese company. The company also revealed that it has buyers for its SAAB and Saturn brands.
According to a person briefed on the deal, GM has an agreement to sell Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co. of China. The Detroit giant had announced on tuesday morning that it had a memorandum of understanding to sell the brand of rugged SUV’s but didnt identify the buyer. Speaking on the condition of annoymity, the same person said that the formal announcement of the buyer will take place sometime on tueday evening.
Sichuan Tengzhong deals in road construction, plastics, resins and other industrial products and Hummer would be their first foray into the business of making automobiles.
GM said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships.
As part of the proposed transaction, Hummer will continue to contract vehicle manufacturing and business services from GM during a transitional period. For example, GM’s Shreveport, La., assembly plant would continue to contract to assemble the H3 and H3T through at least 2010, GM said.
GM sold about 27,485 Hummers in the US market in 2008, down 51 percent yoy.
The company previously said that two overseas companies and one US company were interested in buying the Hummer.
4 People have left comments on this post
Well Hummer is a dead company and GM found someone foolish enough to buy it in these fuel economy sensitive environment.
lets hope it does not go the mg way. The whole production line was shifted to china.
I guess its a good step by chinese, since china doesnt have an international reputation till date. so hummer will give them that instant boost as hummer is much hyped by american movies and arnold. hope i will be downsized and localised and available in india at cheaper rates.
Will it be now be sold for $5000?