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General Motors sells Hummer brand to Chinese firm Sichuan Tengzhong confirmed !
By Amarendra Bhushan for CEOWORLD Magazine Updated:June 2, 2009
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Sichuan Tengzhong Heavy Industrial Machinery, a privately-owned Chinese company, is buying Hummer for an expected $150m $250m
General Motors Corp. has struck a deal to sell its Hummer truck unit to a Chinese industrial business.
Privately owned Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., based in China, will acquire the truck brand.
A Chengdu-based Chinese manufacturer Sichuan Tengzhong Heavy Industrial Machinery says it plans to buy General Motors’ Hummer brand for an undisclosed sum.
Tengzhong is a privately held maker of road, construction and energy industry equipment based in the Chinese province of Sichuan.
As part of the deal, the company is expected to sign a long-term contract assembly and component and material supply agreement with GM.
If the deal is successful, GM says it expects it to save about 3,000 jobs.
Hummer will keep its existing management team and remain based in the United States. Tengzhong says it expects to expand the brand’s dealer network worldwide, especially to China.
The companies said the deal would likely close by the end of September.
“Hummer was estimated to be worth $500 million, Chief Executive Officer Fritz Henderson said in bankruptcy court documents.”
PickupTrucks.com’s Mike Levine reports that “the buyer has a proven track record in international business, knows the Hummer brand can perform better globally, has a long-term development plan and is willing to invest in future products.”
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