According to Chinese news portal 163.com, citing "exclusive sources", the terms of the deal between the Americans and the Chinese do not bring anything new to the table. As a result of the buy, Tengzhong will become the owner of the intellectual property rights, including the trademark, patent right and other contents of Hummer. All of the sales network operated by Hummer will pass over to the Chinese, while maintenance, research and development will not be stopped.
As for the more financial part of the deal, Hummer will be operated by Tengzhong via an off-shore company. Still, GM will continue to manufacture Hummer vehicles until 2012, as well as providing technical services. Before the same year, 2012, Tengzhong will launch two new models, the H3 and H4.
The signing of a deal between the two companies is expected this week, as Chinese representatives were already said to be headed for Detroit. Although no official, conclusive word came from neither, sources claim the deal is on the verge of getting put on paper.
"Negotiations continue to progress and the transaction will be announced upon the signing of the definitive agreement as soon as appropriate," GM's Hummer CEO Jim Taylor said two days ago. His statement was reinforced by Tengzhong spokesman Tim Payne, who practically said the same thing.
"We've been in frequent discussion to finalise a definitive agreement which will be announced as soon as appropriate."
Google News