Tengzhong Establishes Hummer Division in Shanghai

China's Sichuan Tengzhong Heavy Industrial Machinery Co. makes another step towards buying General Motors' Hummer brand by establishing a sales division in Shanghai. Furthermore, Tengzhong has already appointed Huang Zhiqiang, vice president of Chery Auto's international business department, to oversee the activity at the division.

The company said the new unit will be in charge of marketing imported Hummer vehicles, according to a report by gasgoo.com citing netease.com.

Tengzhong and General Motors reached a preliminary agreement for buying Hummer back in June but several sources hinted that the Chinese manufacturer might be blocked in its attempt to take over the American manufacturer by Chinese regulators. Furthermore, some voices claimed Tengzhong would do no good to Hummer as the company does not have too much experience in the auto sector.

"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, in June when reaching the deal with GM.

"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."

Recent speculation hinted that Tengzhong intends to transfer a part of Hummer's production in China, in a broader attempt to expand the coverage of this brand in new and yet unexplored markets. However, the two sides expect the deal to be completed this September.