Sichuan Tengzhong to Take Over Hummer

After the company yesterday announced that it has reached a tentative agreement with an outside investor interested in buying the Hummer brand, General Motors today announced that its off-road unit will go to China under the ownership of Sichuan Tengzhong. Well, nobody expected to see Hummer bought by a Chinese manufacturer, with some voices even claiming that the company will have absolutely no future under the patronage of Sichuan Tengzhong.

Nevertheless, General Motors says the deal was extremely important for the company and it expects to secure around 3,000 jobs in the United States. Terms of the deal are yet to be disclosed.

"The Hummer brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing Hummer to innovate and grow in exciting new ways under the leadership and continuity of its current management team," said Yang Yi, CEO of Tengzhong. Mr. Yang continued, "We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S."

"Today Hummer is a globally recognized brand with excellent growth prospects, both in terms of new markets and new products for our existing markets," said James Taylor, Hummer chief executive officer. "With Tengzhong's investment and strong support, we will be able to make our visions a reality. This transaction, if successful, will secure more than 3,000 U.S. jobs, and allow us to embark on a more aggressive global expansion, ensuring a successful future with our new partners."

The new Hummer will still be headquartered in the United States and will continue operations with the same leadership team. Obviously, the new owner predicts a strong growth into China, with the deal projected to close in the third quarter of the year.