China's Sichuan Tengzhong Heavy Industrial Machinery will be the new owner of GM’s iconic brand Hummer. Tengzhong will have an 80 percent stake and the rest will be owned by a private investor. The complete transaction is yet to be approved by both US and the Chinese regulatory agencies. It is expected to be completed by end of this year or early 2010.
Tengzhong currently produces commercial trucks and industrial equipment and does not hold any experience in passenger vehicles, especially cars. “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," says Yang Yi, chief executive officer of Tengzhong.
According to the press release on October 09, 2009, General Motors and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), have entered into a definitive agreement. As per the contract, General Motors will contract all vehicle manufacturing, business services and key components to Tengzhong during a defined transitional period. Hummer will continue to be spearheaded by its existing leadership team including James Taylor, who will remain in his current role as HUMMER's chief executive officer.
