autoevolution
 

Hummer Production Stops on Monday

American manufacturer GM will reportedly close the line in its Shreveport, Louisiana plant, on which the Hummer is produced, on Monday, January 18, as it awaits the conclusion of the deal with the Chinese from Tengzhong. It is the first news from Hummer since the deal between GM and Tengzhong was signed in October.

According to DetNews, Shreveport has manufactured enough Hummers to last until a final deal between the parties is reached. Nick Richards, Hummer spokesman, says there were 2,100 Hummers at the end of December, enough to last some seven months given current sales rates.

Although the Hummer line will close on Monday, the Shreveport facility will continue to manufacture Chevrolet Colorado and Canyon mid-size pickups, as the gas-guzzler accounted for less than a quarter of the plant's volume anyway.

As stated in the deal signed last year, Hummer will be bought through an investment entity by Tengzong, who will own 80 percent of the company and Suolang Duoji, a private entrepreneur who will own the remaining stake. The value of the deal has not been disclosed.

As a result, Tengzhong will get ownership of the Hummer brand, all trademark and trade names, as well as intellectual properties rights to manufacturer Hummer vehicles. The Hummer dealership network will also pass over to the Chinese.

From the production standpoint, the Chinese owned Hummer will purchase components and business services from GM. The management team of the brand will remain largely unchanged, with James Taylor acting as CEO.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories