Update: Sichuan Tengzhong Heavy Industrial Machinery Co named as buyer. Revised story coming.
Following General Motors declaring bankruptcy earlier today, the company has now announced it has entered into a Memorandum of Understanding (MoU) with a buyer for its once strong Hummer brand.
Although most suspected the sale to happen sooner than later, GM says it's a result of the company's strategic review of the Hummer brand and its current rebuilding efforts.
Under terms of the MoU, GM will not disclose the identity of the purchaser, however if rumours are anything to go by, it could be a buyer from India. The plan is to have the sale finalised by the end of third quarter of this year.
As part of the condition of sale, the purchaser will secure more than 3000 US jobs in manufacturing, engineering and at Hummer dealerships around the country.
Additionally the new owner will have to "aggressively fund future Hummer product programs".
With sales of Hummer vehicles slowing in the last 12-18 months, GM's decision to move away from its "big-is-better" image into a more eco friendly manufacturer is a necessity if the company intends to come back strong.
Troy Clarke, President of GM North America said Hummer's sale will make GM "into a leaner, more focused, and more cost-competitive automaker".
The new owner will have an agreement with GM to continue to contract assemble the H3 and H3T through at least 2010 at GM's Shreveport Assembly plant.