GM deals Hummer to Chinese buyer
Bankrupt automaker won’t disclose details of deal to sell truck line, but source identifies buyer as Sichuan Tengzhong.
NEW YORK (CNNMoney.com) — General Motors Corp. has signed a deal to sell its Hummer truck unit to a Chinese industrial company, a person with knowledge of the deal said Tuesday.
The news comes a day after GM (GMGMQ) filed for bankruptcy protection in New York. The company did not identify the buyer nor name a price, saying only that the deal would close by the end of September.
But a source identified the buyer as Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. in China.
As part of the deal, some GM plants will continue to build the Hummer brand for the new owner, at least for awhile. The company said its Shreveport, La., plant will keep building Hummers for the new owner until at least 2010.
“I’m confident that Hummer will thrive globally under its new ownership,” said Troy Clarke, president of GM North America, in a press release. “And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker.”
GM also said that the deal should protect
Made in China? Probably not..
more than 3,000 jobs in manufacturing and engineering, and at dealerships “around the country.”
The sale of the Hummer brand to a Chinese company will not impact the production of U.S. military vehicles. Military Humvees are produced by a different company, privately held AM General, based in South Bend, Ind.
GM bought rights to the Hummer brand name in 1999.
The Hummer and other large vehicles have been a drag on the U.S. auto industry since fuel prices spiked in 2008 and the recession deepened.
GM said it sold 5,013 Hummers worldwide in the first quarter, down 62% from the 13,050 that it sold in the same period the prior year.
Hummer isn’t the only brand that GM is leaving behind. The automaker will also shed its Pontiac, Saturn and Saab brands and cut loose more than 2,000 of its 6,000 U.S. dealerships by next year.
That could result in more than 100,000 additional job losses if those dealerships are forced to close.
GM filed for bankruptcy hours after Chrysler’s bankruptcy process cleared a hurdle when a federal judge approved its asset sale.
The GM bankruptcy was hailed by President Obama, who wants a complete overhaul of the U.S. auto industry, even though the Chapter 11 filing is expected to result in the loss of 20,000 jobs and the closure of a dozen facilities.
Citigroup (C, Fortune 500) was financial adviser in GM’s Hummer deal.
–CNNMoney.com senior writer Peter Valdes-Dapena contributed to this report
GM deals Hummer to Chinese buyer
Bankrupt automaker won’t disclose details of deal to sell truck line, but source identifies buyer as Sichuan Tengzhong.
By Aaron Smith, CNNMoney.com staff writer
Last Updated: June 2, 2009: 3:03 PM ET
NEW YORK (CNNMoney.com) — General Motors Corp. has signed a deal to sell its Hummer truck unit to a Chinese industrial company, a person with knowledge [...]
Next Generation Porsche 911/988 Spied
Spied photos of the Porsche 911 Coupe and Cabriolet model code named 998 have been published before. These images here offer a new possibility after our spies went over and looked closer at the car’s roof. From what they saw it seems Porsche is now testing a Targa version of the 998 911. Targa models [...]
Project Kahn and Lorinser unite in tuning partnership
German tuner Lorinser and UK-based Project Kahn partner on a tuning package for the Mercedes S Class
What do you get when a German tuner hooks up with a British designer? Sounds risky, doesn’t it?
What you get first is a Kahn set of wheels. Specifically, Kahn RSL 9 X 21 matte black in the front and [...]
Honda Exit F1!
As expected, Honda Motor Company chief Takeo Fukui in Tokyo confirmed on Friday afternoon that the Japanese manufacturer is withdrawing from formula one ahead of the 2009 season.
He said the decision was taken as a result of the prevailing conditions in the automotive sales sector, including a near-unprecedented decline of more than 30 percent in [...]
New Z4 Sneak Peek
The first photo of a ready-to-sell BMW Z4 has leaked out of an undisclosed dealership. Not meant to be seen by the public until December 15th, the picture shows the final draft of the shiny roadster.
The BMW Z4 will sport an electro-mechanical differential called sDrive, and will likely have an additional engine option in addition [...]
2010 Audi A5/S5 Cabriolet Unveiled
The Audi A5 and its V8-powered S5 sibling are considered by many to be the most beautiful Audis ever created. For some time now it’s been common knowledge that an open top variant of Audi’s latest coupe was coming. We’ll still have to wait until the Geneva Motor Show in March to see the A5 [...]
405 bhp Evo!
The MitsubishiLancer Evolution X is already one hot four-door, but Mitsubishi UK plans to crank up the heat up even more. Mitsubishi’s UK arm is currently developing a new high-performance Evo with ADR Motorsports, a joint venture that promises to produce the fastest and most expensive Evo to date.
Dubbed the Mitsubishi Evo X FQ-400, the [...]
PPI Razor GTR based on Audi R8 Debuts at Essen
Plenty of sick looking Audi R8s for us to be drooling about in this year Essen Motor Show. After seeing the R8 GT3 and the R8 LMS, specialist Audi tuners PPI Automotive Design have brought yet another R8 re-invention to the Essen Motor Show.
Here are the fresh pics from today’s opening where you can get a good look at [...]
Audi R8 GT3 race car debuts at Essen Motor Show
Audi’s motorsport division announced plans back in August to launch a 500hp-plus (373kW) version of the R8 for use in next year’s GT3 series, and today the car made its debut at the Essen Motor Show in Germany.
The new car has been designed for private customer teams and fully conforms to the production-based GT3 regulations, [...]
Brabus Tesla Roadster Hits the Essen Stage
Here comes the tuner of the future. Notwithstanding the plummeting price of oil, consumer tastes have made a paradigm shift towards economical cars mainly because of, well, global economics. And it’s probably a smart idea to try to get in ahead of the game on the emerging trend towards zero emissions cars.
Yes, BRABUS is tuning [...]
TAG CLOUD
WP Cumulus Flash tag cloud by Roy Tanck requires Flash Player 9 or better.
POPULAR NEWS
RECENT NEWS
- Convertible Toyobaru FT-86 unveiled in Tokyo
- Abu Dhabi GP Second Practice
- GM deals Hummer to Chinese buyer
- 2009 F1 challegers so far…
- Next Generation Porsche 911/988 Spied
- BMW and Sirius XM Radio Extend Relationship
- The Diesel Resurrection
- Project Kahn and Lorinser unite in tuning partnership
- Honda Exit F1!
- 2009 FJ Cruiser
Loading ...