Hummer Sale, Agreed This Week?

American manufacturer GM may get rid of yet another asset as soon as this week, as reports say the company together with Chinese buyer Sichuan Tengzhong Heavy Industrial Machinery may sign an agreement as soon as this week, as Chinese Tengzhong representatives are expected in Detroit these days.

"Since early June, when GM announced that it reached a memorandum of understanding with Tengzhong for the potential sale of the Hummer brand, the parties have been in frequent discussions working closely to finalise a definitive agreement," GM's Hummer CEO Jim Taylor was quoted as saying by Bloomberg. "Negotiations continue to progress and the transaction will be announced upon the signing of the definitive agreement as soon as appropriate."

The deal expected to be signed will be subjected to both US and Chinese regulatory bodies. The main concern until now was that the Chinese officials would not approve the sale, but latest reports say Tengzhong has come to terms with government officials and the National Development and Reform Commission now sees no problem with the sale.

According to the initial deal, Hummer would keep its business into the US, as well as all of the 3,000 jobs. In early June, Tengzhong confirmed however it plans on moving some of the Hummer production to China, in Chengdu, the capital of the Sichuan provence.

As for the deal to be reached soon, Tengzhong spokesman Tim Payne told Bloomberg the conclusion will be announced in due time.

"We are working through a process, we've been in frequent discussion to finalise a definitive agreement which will be announced as soon as appropriate."