Hummer goes Chinese

Posted on Jun 17, 2009 by

General Motors has agreed the
sale of to a Chinese automotive newcomer.

The famous US off-road brand will
be bought by the Sichuan Tengzhong Heavy Industrial Machinery Company, a firm
that makes equipment for the road, construction and energy industries.

The new owners plan to keep
Hummer’s existing US facilities and 3,000 staff, and have no plans to build the
cars in China itself according to the country’s Xinhua news agency.

GM started trying to sell Hummer
a year ago and hoped to make around $500 million from it. Although the sale
amount has not been confirmed, analysts estimate it to be only around $100
million.

GM went into bankruptcy
protection this week with debts of $173 billion.

The news marks China’s continued
expansion into the world car market. In 2004 Shanghai Automotive Industry
Corporation took a 48.9% stake in Korean carmaker SsangYong, and the British
marque MG was sold to Nanjing Automotive in 2005. In March, Chinese carmaker
Geely bought the world’s second largest manufacturer of automatic
transmissions, Drivetrain Systems International.

I mage Gallery

 

GM went into bankruptcy
protection this week with debts of $173 billion.

The news marks China’s continued
expansion into the world car market. In 2004 Shanghai Automotive Industry
Corporation took a 48.9% stake in Korean carmaker SsangYong, and the British
marque MG was sold to Nanjing Automotive in 2005. In March, Chinese carmaker
Geely bought the world’s second largest manufacturer of automatic
transmissions, Drivetrain Systems International.

I mage Gallery

 

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