GM confirms deal to sell Hummer
General Motors has finalized an agreement…
October 10, 2009 4:33 by kippreport
General Motors has finalized an agreement to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery, a Chinese company, reports the Wall Street Journal. Tengzhong bought the brand for $150 million, people familiar with the deal told the paper. According to the deal, GM will continue manufacturing the vehicles until 2012, after which Tengzhong will take over production.
However, Hummer officials still have to convince Chinese regulators that the deal will be profitable. “One of the big issues we have is to convince them Hummer will not stay as is,” Jim Taylor, Hummer’s CEO told the paper. “That it can be a lot greener and a lot more fuel-efficient than it is.”