"Tengzhong was unable to complete the acquisition,” GM said today in a statement. The Chinese company failed to win government approval of the sale, a source familiar with the negotiations said.
All warranty issues will be honoured by General Motors as well as providing spare parts and support worldwide.
Hummer is the last unwanted brand that General Motors was attempting to sell. After the failed sale of the Saturn brand which is also being wound down and the phasing out of the Pontiac brand. The only successful sale has been that of Saab which almost didn't happen.
GM is still open to bids for Hummer as it winds the brand down. Saab was in the process of being wound down when Spyker entered into the bidding process which was successful. GM doesn't have high hopes for a similar outcome for Hummer though.
Hummer has been up for sale since 2008 and has had a 67 percent sales decline in 2009, the worst result of any volume brand in the U.S. Hummer first entered the civilian market in 1992 and GM bought the brand in 1999 from AM General who continue to manufacture the version for the armed forces.Hummer's best sales result in the U.S. was 71,524 in 2006 before the price of fuel rose above $4 per gallon in 2008. Last year sales were down to 9,046.