GM Finalizes Deal To Sell Hummer To China’s Tengzhong

October 10, 2009

(ChattahBox) — Bringing a little closure to an earlier post we reported General Motors Corp. has finalized a deal to sell its Hummer truck unit to Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. out of western China. The deal for about $150 million, which was announced on the General Motors website, marks another step in the long march by China to develop a world class local automobile industry.

Sichuan Tengzhong Heavy Industrial Machinery Co. will take 80% and a Chinese entrepreneur from Sichuan province in China‚Äôs interior, Suolang Duoji will take 20%. The deal stipulates the manufacture of all Hummer brand vehicles will continue at its U.S. plants until 2011, ensuring 3,000 workers will keep their jobs and is also China’s first major entry into the U.S. auto market. Tengzhong says it hopes to create a stable of trucks that are more fuel-efficient and environmentally friendly than the current lineup. Sichuan Tengzhong is a privately owned company known in China for making road equipment from highway construction to maintenance machinery but recently moving into manufacturing heavy-duty trucks.

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Comments

One Response to “GM Finalizes Deal To Sell Hummer To China’s Tengzhong”

  1. americancarinfo.com on October 11th, 2009 1:06 pm

    If the chinese own Hummer who will make the Humvee for our military?

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