General Motors sell Hummer to Sichuan Tengzhong
12 Oct 2009|4,959 views
GM released a statement that said, "General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), today announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM's premium all-terrain HUMMER brand."
The deal will see the Chinese company take an 80 percent stake in the Hummer brand, with the remaining 20 percent going to a private investor. A report says that the deal will see Hummer being sold for around US$150 million, although final approval will only be granted early next year.
The Hummer headquarters will remain in Detroit, as the state of Michigan has given a $20.6 million state tax credit for the company to stay put in the United States. Most of the staff will likely be retained, including current Hummer CEO James Taylor, and Hummers will continue to be produced at their existing plants, like the H3 and H3T at Shreveport, Louisiana, and the H2 at Mishawaka.
GM President and CEO Fritz Henderson said, "HUMMER is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and HUMMER. For HUMMER, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future."
CEO of Sichuan Tengzhong Yang Yi added, "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."
Once the transaction is complete, there are plans to introduce Hummer's E85 flexible fuel technology across all models in the range, which would make it the first manufacturer to have an alternative fuel version of every model in its range.
GM released a statement that said, "General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), today announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM's premium all-terrain HUMMER brand."
The deal will see the Chinese company take an 80 percent stake in the Hummer brand, with the remaining 20 percent going to a private investor. A report says that the deal will see Hummer being sold for around US$150 million, although final approval will only be granted early next year.
The Hummer headquarters will remain in Detroit, as the state of Michigan has given a $20.6 million state tax credit for the company to stay put in the United States. Most of the staff will likely be retained, including current Hummer CEO James Taylor, and Hummers will continue to be produced at their existing plants, like the H3 and H3T at Shreveport, Louisiana, and the H2 at Mishawaka.
GM President and CEO Fritz Henderson said, "HUMMER is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and HUMMER. For HUMMER, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future."
CEO of Sichuan Tengzhong Yang Yi added, "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."
Once the transaction is complete, there are plans to introduce Hummer's E85 flexible fuel technology across all models in the range, which would make it the first manufacturer to have an alternative fuel version of every model in its range.
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