GM Hummer Update: Close to $150 Million deal

General Motors Co. (GM) looks set to seal the deal to offload Hummer today, Friday, October 09, 2009. GM hopes to be able to sell the outfit for $150 million to China’s Tengzhong Heavy Industrial Machinery Co. This is according to reports from those closely involved in the talks.

The Wall Street Journal says that the deal could still fall through as Hummer are known for being gas-guzzling vehicles, something that most nations are trying to reduce. However, recent information says that Chinese regulators have been informed on this issue and that the deal still looks set to go ahead.

The deal will not only benefit General Motors, but also China as a nation, as it will be the first time that a Chinese company has stepped in to help a troubled U.S. automaker in a crisis. This help from China does not stop there though, as they plan to do more.

It looks as though the Beijing Automotive Industry Holding Co. is looking to create an alliance with GM’s Saab unit. They will do this by going through its investment in Koenigsegg Automotive AB, who is bidding for Saab.

This shows China’s commitment to try to acquire foreign technology in the hope of improving their own vehicles. This will also be a platform for China to compete with other foreign automakers in their homeland.