Hummer finally sold to a Chinese buyer

Hummer finally sold to a Chinese buyer

Hummer fq

General Motors has announced it’s entered “into a memorandum of understanding with a buyer for Hummer,” but under the terms of the transaction, the buyer can’t be officially disclosed. Insider’s reports say that the Hummer division has been sold to a machinery company in western China. That company, Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., isn’t a carmaker by trade but is well known for making construction and maintenance equipment, but has recently shifted into heavy-duty trucks.

GM’s announcement only scratches the surface of the plan, saying that the deal is expected to close by the third quarter of this year, that the new investor is committed to funding future Hummer products – perhaps the expected H4 and a two-door H3T. In addition 3,000 U.S. manufacturing, engineering and dealer jobs will be saved.

According to the New York Times the memorandum of understanding between GM and Sichuan Tengzhong needs to be approved by Beijing officials, as the Chinese government has the discretion to veto any purchases of overseas firms by a Chinese company, particularly those transactions valued over $100 million USD. Hummer’s final price tag hasn’t been confirmed but it is widely believed that to be under $500 million USD.

Hummer fq

General Motors has announced it’s entered “into a memorandum of understanding with a buyer for Hummer,” but under the terms of the transaction, the buyer can’t be officially disclosed. Insider’s reports say that the Hummer division has been sold to a machinery company in western China. That company, Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., isn’t a carmaker by trade but is well known for making construction and maintenance equipment, but has recently shifted into heavy-duty trucks.

GM’s announcement only scratches the surface of the plan, saying that the deal is expected to close by the third quarter of this year, that the new investor is committed to funding future Hummer products – perhaps the expected H4 and a two-door H3T. In addition 3,000 U.S. manufacturing, engineering and dealer jobs will be saved.

According to the New York Times the memorandum of understanding between GM and Sichuan Tengzhong needs to be approved by Beijing officials, as the Chinese government has the discretion to veto any purchases of overseas firms by a Chinese company, particularly those transactions valued over $100 million USD. Hummer’s final price tag hasn’t been confirmed but it is widely believed that to be under $500 million USD.

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