We covered yesterday the news that GM is locked in talks with a mystery buyer for their off-road brand HUMMER. Today it has been announced that Chinese engineering company Sichuan Tengzhong Heavy Industrial Machinery Co. ltd is the mystery buyer of the brand, although no deal has yet been finalised.
Tengzhong hope to acquire not only the famous off-road brand, but also the senior management and operational teams, and include a long term contract with GM for continued production of the vehicles at the existing plant in the US.
The deal will also safe guard the existing dealer network both in the US and abroad, and the company hope to open up new markets in its native homeland for the super-sized vehicles.
“The HUMMER brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing HUMMER to innovate and grow in exciting new ways under the leadership and continuity of its current management team,” said Yang Yi, CEO of Tengzhong. Mr. Yang continued, “We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S.”
“Today HUMMER is a globally recognized brand with excellent growth prospects, both in terms of new markets and new products for our existing markets,” said James Taylor, HUMMER chief executive officer. “With Tengzhong’s investment and strong support, we will be able to make our visions a reality. This transaction, if successful, will secure more than 3,000 U.S. jobs, and allow us to embark on a more aggressive global expansion, ensuring a successful future with our new partners.”
