GM sells Hummer to Sichuan Tengzhong Heavy Industrial MachineryOctober 10th, 2009 - 12:58 am ICT by Aishwarya Bhatt
Detroit, Oct 9 (THAINDIAN NEWS) General Motors Co. has signed an agreement to sell its legendary and iconic Hummer brand to a Chinese heavy equipment maker Sichuan Tengzhong Heavy Industrial Machinery Co.
The Chinese heavy-duty machinery company says that will acquire 80 percent of the Hummer brand, trademarks and trade names plus intellectual property rights needed to build Hummer vehicles.
The leftover 20 percent will go to Suolang Duoji, a private entrepreneur.
The financial terms and conditions were not disclosed, so it is not known how much the total deal is worth. However, earlier GM in its bankruptcy filing that its Hummer brand could bring in $500 million or more, so presumably this particular deal is worth around $500 million whereabouts.
The investors also will get Hummer’s nationwide dealer network too.
“HUMMER is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and HUMMER,” said Fritz Henderson, GM President and CEO. “For HUMMER, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future.”
Also, another reason for Hummer’s sale could be the reason that its sales were down 64 percent in September from a year ago.
According to a Press release by General Motors it says that it wants to focus on four core brands: Chevy, Cadillac, Buick and GMC.
Tags: bankruptcy filing, core brands, design expertise, duty machinery, fritz, general motors, global niche, heavy duty, heavy equipment, heavy industrial machinery, hummer, hummer vehicles, industrial machinery co, intellectual property rights, leadership team, machinery company, milestone, private entrepreneur, sichuan, trade names