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GM OKs Hummer sale
GM OKs Hummer deal
Posted Monday, Oct 12, 2009, 1:18 pm in Employee News
General Motors Co. has reached a sales agreement for its Hummer brand with a Chinese company that plans to keep the rugged auto company’s headquarters in the Detroit area, The Detroit News reported.
Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. is buying the brand, trademark, trade names and intellectual property license rights to build Hummer vehicles, the paper said. The company also is taking over existing dealer agreements, the News said.
The deal, which saves 3,000 jobs, comes one week after Detroit auto icon Roger Penske terminated a deal for Saturn, another castoff brand GM is shedding, the paper said. Tengzhong plans to buy Hummer through an investment company, which will hold an 80 percent stake; private entrepreneur Suolang Duoji, will hold 20 percent. GM did not disclose financial terms of the deal, which is subject to U.S. and Chinese government and regulatory approval, but said in its bankruptcy filing Hummer might bring $500 million or more. (The Detroit News)
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
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