12 Oct 2009

GM to sell Hummer brand to Chinese company

12:02 pm on 12 October 2009

After months of talks, General Motors is to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery of China.

The price has not been disclosed. The BBC reports GM is in the process of selling and winding up a number of brands as it looks to reorganise after emerging from bankruptcy protection in July.

Earlier this month, GM announced it would wind down its Saturn brand, after a proposed sale to Penske Automotive Group collapsed.

GM has already announced that it is discontinuing the Pontiac brand, and is close to finalising the sale of its European brands Saab, Opel and Vauxhall.

GM is keeping the Chevrolet, GMC, Cadillac and Buick brands.

Under the terms of the deal, Tengzhong will take an 80% stake in the company, with the remaining 20% going to Hong Kong entrepreneur Suolong Duoji.

The BBC reports the current Hummer management team will continue to run the company.

The deal is still subject to regulatory approval.

Military vehicles

Hummers were originally built as military off-road vehicles. GM bought the brand in 1999, but sales have suffered recently as the gas-guzzling performance and military image have become less popular.

Hummers weigh up to five tons and have fuel consumption of around 15 miles per gallon.

Tengzhong specialises in making equipment for the road, construction and energy industries. It is based in Sichuan province.