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.
"Hummer is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and Hummer," Fritz Henderson, GM CEO said when announcing the deal. "For Hummer, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future."
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.
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.
"This transaction marks an exciting step for both Tengzhong and Hummer, as we invest in a business that has significant opportunity in the U.S. and around the globe," Yang Yi, Tengzhong CEO added. "We are excited about some of the initiatives already underway at Hummer that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel-efficient vehicles to meet not only future regulations but also customer expectations."