Hummer sale to Tengzhong finally confirmed

Hummer sale to Tengzhong finally confirmed

Hummer

General Motors has finally reached an agreement to sell Hummer onto China’s Sichuan Tengzhong Heavy Industrial Machinery. Tengzhong is set to take an 80 percent stake and a private investor grabbing the rest.

Details on the deal include Hummer contracting back vehicle manufacturing to GM, with the GM’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 get GM around $150 million, although the transaction still has to be approved by both U.S. and Chinese regulatory agencies.

Tengzhong, which only produces commercial trucks and industrial equipment, has never entered into consumer vehicles before, but chief executive Yang Yi is confident saying, “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.”

Hummer

General Motors has finally reached an agreement to sell Hummer onto China’s Sichuan Tengzhong Heavy Industrial Machinery. Tengzhong is set to take an 80 percent stake and a private investor grabbing the rest.

Details on the deal include Hummer contracting back vehicle manufacturing to GM, with the GM’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 get GM around $150 million, although the transaction still has to be approved by both U.S. and Chinese regulatory agencies.

Tengzhong, which only produces commercial trucks and industrial equipment, has never entered into consumer vehicles before, but chief executive Yang Yi is confident saying, “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.”

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