Chinese to Continue Hummer's Growth

Even if some voices are claiming that Hummer would go even lower under the patronage of a Chinese manufacturer, General Motors says the off-road carmaker will actually grow with the help of Chinese equipment manufacturer Sichuan Tengzhong Heavy Industrial Machinery Co., of Sichuan province. Furthermore, the American company says the Chinese owner will introduce new engines and maybe models, while retaining the current dealership network in the United States.

"The brand lives another day," Hummer CEO Jim Taylor said today. "We've been in talks with these guys for over six months," he added according to Autonews. "The reality is in China you have folks that are willing to make investments all over the world and they go on a world search for a business that would be complementary for them. They see a lot of growth potential with this brand both inside and outside of China."

Speaking about the company's short-term plans, Taylor said that Hummer is now planning to revamp its sales, which would include some model and powertrain changes in order to meet federal regulations.

"The immediate challenge is to regain our sales momentum," Taylor said. "Then we have to go after some product changes that will get us into that space where we are compliant with new federal regulations. You'll see a broader lineup, that means more models and alternative powertrains that meet the federal regulations."

Hummer's CEO also confirmed that under Chinese ownership, the company's dealership will be safe and will continue to run operations as normal. "This is good news for them," Taylor said. "Nothing happens to them, and in a good way. They're saved."