Detroit: Hummer, the off-road vehicle that
once epitomized America's love for hulking trucks, is now in
the hands of a Chinese heavy equipment maker.
General Motors Co and Sichuan Tengzhong Heavy Industrial
Machinery Corp finally signed the much-anticipated deal for GM
to sell the brand on Friday.
Tengzhong will get an 80 percent stake in the company,
while Hong Kong investor Suolang Duoji, who indirectly owns a
big stake in Tengzhong through an investment company, will get
20 percent. The investors will also get Hummer's nationwide
dealer network.
Financial terms were not disclosed, although a person
briefed on the deal said the sale price was around USD 150
million. The person did not want to be identified because the
terms were being kept private. GM's bankruptcy filing last
summer said that the brand with military roots could bring in
USD 500 million or more.
Suolang Duoji also is the controlling shareholder and
chairman of Lumena Resources Corp, a Hong Kong listed mining
company.
GM and Tengzhong said in a statement that the transaction
still must be approved by the US and Chinese governments.
Chinese regulators initially expressed reservations about
Tengzhong's ability to run such an enterprise.
Bureau Report
First Published: Saturday, October 10, 2009, 09:11