GM May Reportedly Sell Hummer This Week
Despite prior concerns that the Chinese government would block the sale of Hummer to Chengdu, China-based Sichuan Tengzhong Heavy Industrial Machinery Company, sources familiar with the negotiations say the sale could be completed this week.
Citing two people familiar with the talks between General Motors and Tengzhong, Bloomberg said executives from the Chinese company may arrive in Detroit early this week, and an agreement could be signed during the trip. The agreement would be subject to U.S. and Chinese regulatory approval.
Concerns arose in June that China’s government would not allow Tengzhong to purchase Hummer because of environmental concerns. According to Bloomberg’s sources, however, government regulators have no qualms with the sale. A report from the National Business Daily said China’s Ministry of Commerce has already reached a consensus to internally approve the deal.
Hummer CEO Jim Taylor has said that the division will remain a U.S.-based company. Several locations are being considered as headquarters, including Detroit and Nashville. Taylor said Hummer will have fewer than 100 corporate employees, and will contract with GM for manufacturing.
If GM successfully closes the deal with Tengzhong, Hummer would be its first jettisoned division. Pontiac will be shuttered by 2010, while deals to sell Saturn to Penske Automotive Group and Saab to Koenigsegg are still pending.