General Motors has announced that they will be winding down the Hummer brand, as they could not complete a deal with Sichuan Tengzhong Heavy Industrial Machinery.
Reports suggest that the deal couldn’t be completed because the Chinese government didn’t approve it, although it’s unknown why this disapproval occurred. Most people are happy about this event, and the brand has been getting worse and worse in my view, so it’s about time to get rid of it. However, this may not be the end for Hummer yet, just like it was with Saab.
Wall Street Journal is reporting that General Motors is having another look at two previous offers for Hummer, which were rejected in favour of Tengzhong. Now that Tengzhong is out of it, one of these offers may be good enough for GM. WSJ doesn’t specify what companies are involved in these offers. So only time will tell whether or not Hummer is gone for good.
HUMMER Sale to Tengzhong Cannot be Completed
Wind down of HUMMER business to begin
DETROIT – General Motors today announced that Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to complete the acquisition of HUMMER.As a result, GM will begin the orderly wind-down of the HUMMER operations.
“One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. 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.”
GM will continue to honor HUMMER warranties, while providing service support and spare parts to current HUMMER owners around the world.
Source: General Motors and Wall Street Journal via Autoblog