Iconic Hummer brand sold to Chinese manufacturer
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Last Updated: Saturday, October 10, 2009, 09:11
  
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


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