Report: GM Sells Hummer To China

China Cars Bankrupt Automaker Tight-Lipped On Details Of Deal Which Could Save 3000 Jobs..

by CBS/AP

Published: Tue, June 02, 2009 - 12:19 pm CST Last Updated: Tue, June 02, 2009 - 12:21 pm CST

(CBS/ AP) A Chinese company is the mystery buyer of General Motors' Hummer brand, according to a report in The New York Times.

A source close to the agreement said the Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., based in Chengdu, reached a deal with GM.

The company is a privately owned, however, Tuesday's deal "required preliminary vetting by Beijing officials, who retain the right to veto any attempt at an overseas acquisition by a Chinese company and who give special attention to deals over $100 million," reports the Times.

Appearing on CBS' The Early Show Tuesday, GM CEO Fritz Henderson did not disclose the buyer's name or the price, but said the "buyer is quite capable."

The Detroit-based company said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships.

Critics had seized on the rugged but fuel-inefficient Hummer as a symbol of excess as GM's financial troubles grew and gas prices rose.

A sale of the Hummer brand had been expected. Henderson had said in April that the automaker was expecting final bids from three potential buyers within the month.

Other terms of the transaction, which is currently tied to a memorandum of understanding, were not disclosed.

GM is also trying to sell its Saab and Saturn brands and will phase out its Pontiac brand as it concentrates on its Chevrolet, Cadillac, Buick and GMC nameplates.

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BSB1958 Says:

Thu, Jun 04, 2009 at 1:14 pm

There seem to be plenty of these gas guzziling Behemoths on the streets of Mobile. More power to ya if you have the means
I wonder if the Chinese co. will handle the warranty repairs?

But I am sure there is way more to this story….......... We will see