General Motors completes deal with Chinese company for Hummer brand

(October 9, 2009) General Motors has completed a deal to sell the Hummer SUV brand to China's Sichuan Tengzhong Heavy Industrial Machinery Co.

The companies did not disclose financial terms in announcing the deal today. News reports said Thursday that Sichuan Tengzhong would pay $150 million for the U.S. brand.

Tengzhong is purchasing Hummer through an investment entity, in which it will hold an 80 percent stake. Entrepreneur Suolang Duoji, whose holdings include Chinese chemical maker Lumena, will control the other 20 percent.

Tengzhong will buy the brand, its trademarks and licensing rights to make vehicles and will assume Hummer's dealership agreements. It will get manufacturing, some components and business services from GM during a transitional period, which was not defined.

As an example, the companies said GM's assembly plant in Shreveport, La., will make the H3 and H3T and AM General's factory in Mishawaka, Ind., will make the H2 until June 2011. The deal involves an optional, one-year extension for the factories to make the vehicles until the following June.