GM to wind-down operations of Hummer after sale fails

February 25th, 2010 - 3:18 am ICT by BNO News  

Hummer DETROIT (BNO NEWS) — General Motors (GM) on Wednesday said it will close down its Hummer brand after a Chinese buyer was unable to complete the planned acquisition. It will now wind-down all Hummer operations.

On October 9, 2009, General Motors announced that a definitive agreement was signed for Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) to acquire its Hummer brand. Under the defintiive agreement, Tengzhong would have acquired to ownership of the brand, trademark and trade names, as well as specific IP license rights necessary for the manufacture of Hummer vehicles. Tengzhong would also have assumed the existing dealer agreements related to Hummer’s dealership network.

But the planned acquisition came to an abrupt end on Wednesday when General Motors announced that Tengzhong was “unable” to complete the acquisition. ” We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed,” said John Smith, GM vice president of corporate planning and alliances. “GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”

It was not immediately clear why Tengzhong was unable to complete the deal.

General Motors said it will continue to honor Hummer warranties, while providing service support and spare parts to current Hummer owners around the world.

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