This basically means that Tengzhong and General Motors will continue for one more month but nobody knows for sure what is going to happen if the two fail to reach an agreement one more time.
However, Tengzhong is still waiting for the final approval from the Beijing authorities, which is almost the number one step to be made before shaking hands and taking over the brand.
GM and Tengzhong reached a preliminary agreement back in October and the transaction was projected to close by January 31, 2010. According to a press statement issued by General Motors at that time, the Chinese company would take control of an 80 percent stake while 20 percent would be owned by Suolang Duoji.
"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, at that time 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."
"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."