Following is bankruptcy filing, General Motors has confirmed that the Hummer brand has at last found a buyer. Based on information just released, the buyer has been identified as Chinese firm Sichuan Tengzhong Heavy Industrial Machinery Co. The sales is certainly not soon enough for GM. The Hummer brand had seen ample popularity, but has more recently been handicapped by poor sales and poor consumer perception. GM said the sale was helped by the brand’s sales potential in emerging markets such as China and India.
The sale of Hummer to the Chinese company is expected to be wrapped up by the end of Q3 of this year. With the sale marks a big step for GM towards downsizing, and becoming one step closer to the company that it is supposed to emulate says one Pittsburgh used car dealer. In addition, the Hummer sale has also secured a number of jobs involving manufacturing and engineering personnel, not to mention jobs at Hummer dealerships. Auto Loans Detroit note that the deal also includes provisions for future product development by the new investor. This includes the potential for a new compact SUV.
Numerous details of the buyer and the transaction have yet to be released. Until that time, Oklahoma City Car Loans points out that Hummer will continue to manufacture and sell its vehicles. This includes production at GM’s Shreveport Assembly, which will produce the H3 model until 2010 at minimum.
Sales at Hummer are down over 60% compared with last year. This is a substantial decline that continues to hurt Hummer’s ailing parent company. Meanwhile, dealers have been unhappy by GM’s public bashing of the Hummer nameplate as they wished the pending sales could have been handed more discreetly.
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Stay tuned for more developments on the Hummer sale.
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