Hummer Sale: GM sells brand to company in China

By: Peter Chubb | Posted: October 10, 2009 | No Comments
Filed under: Autos

Following on from our post yesterday about General Motors in talks with Sichuan Tengzhong Heavy Industrial Machinery Corp over its deal to try to sell its Hummer brand, we can now inform you that the brand was sold on Friday. No financial terms were discussed, but there had been rumors that the sale was for around $150 million.

It makes perfect business sense for struggling GM to offload its Hummer brand, as Americans have now fallen out of love with these big trucks. The world is a changing place and it seems that gas-guzzling vehicles do not fit into those plans. This and the fact that oil prices have risen dramatically over the past few years.

According to The State, Tengzhong gets 80 percent of Hummer in the deal; the other 20 percent will go to Suolang Duoji who also has an indirect stake in Tengzhong. Also in the deal, Tengzhong gets the Hummer’s nationwide dealer network.

Both General Motors and Tengzhong released a statement saying that the deal will still need approval from the U.S. and Chinese governments. Initially, Chinese regulators had been opposed to the idea of the deal, but they have since changed their mind.

READ MORE: hummer