It's official, China's Sichuan Tengzhong Heavy Industrial Machinery Company has signed a definitive agreement to purchase the Hummer brand from General Motors.
Hummer’s leadership team will remain in place and the company will be headquartered in Detroit.
For the interim, Hummer will contract with GM to produce the H3 and H3T at the automaker’s Shreveport, Louisiana, assembly plant, while the H2 will continue to be built by AM General in Mishawaka, Indiana. Both plants will be contracted to June 2011, although Tengzhong may extend either contract by one year.
“We are fortunate to have a partner who understands and recognises the importance of continuing investment in Hummer’s heritage as a US-based and branded company with a view toward capitalizing on global opportunities,” said Hummer CEO James Taylor, who will remain in his position with the Chinese ownership.“Backed by a privately owned and well-capitalised company, we are going to be able to focus on providing customers with more efficient models that deliver Hummer’s promise of authentic, purpose-built design and engineering.”
Tengzhong will purchase Hummer through an investment entity, which will own an 80 per cent stake in the automaker. The remaining 20 per cent will be owned by Suolang Duoji, a private entrepreneur.
In addition to acquiring the rights to manufacture Hummer vehicles, Tengzhong will receive the Hummer distribution network.