The Hummer gets a new lease on life from Sichuan Tengzhong Heavy Industrial Machinery Co.
General Motors Co. on Friday finalized an agreement to sell its Hummer truck brand to a Chinese manufacturer, which would mark China’s first major entry into the U.S. auto market. Sichuan Tengzhong Heavy Industrial Machinery Co. bought Hummer in a $150 million deal, according to several people familiar with the deal. Under the terms, GM will continue to manufacture the vehicles until no later than 2012, when Tengzhong will take over production. But before the deal is complete, Chinese regulators must be convinced the brand can become profitable and that the massive SUVs fit a national strategy to improve energy efficiency. “One of the big issues we have is to convince them Hummer will not stay as is,” said Jim Taylor, who will stay on at Hummer chief executive. “That it can be a lot greener and a lot more fuel-efficient than it is.” – From WSJ