GM's Shreveport assembly plant will contract build the H3 and H3T models until 2011 or 2012.
General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) have just announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM’s premium all-terrain Hummer brand.
Under the terms of the definitive agreement, the buyer will acquire the ownership of the Hummer brand, trademark and tradenames, as well as specific intellectual property license rights necessary for the manufacture of Hummer vehicles. The buyer will also assume the existing dealer agreements relating to Hummer’s dealership network.
Tengzhong will purchase Hummer through an investment entity, in which it will hold an 80% share. Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed nardite producer Lumena, will have the remaining 20%.
Financial terms of the agreement were not disclosed.
“This transaction marks an exciting step for both Tengzhong and Hummer, as we invest in a business that has significant opportunity in the U.S. and around the globe,” said Yang Yi, chief executive officer of Tengzhong. “We are excited about some of the initiatives already underway at Hummer that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel-efficient vehicles to meet not only future regulations but also customer expectations.”
Under the agreement, Hummer will vehicle manufacturing, key components and business services from GM. GM’s Shreveport assembly plant would continue to contract assemble the H3 and H3T and AM General’s Mishawaka (Indiana) assembly plant will continue to assemble the H2. Both facilities will produce the specified vehicles until June 2011, with an optional one-year extension until June 2012. The deal is said to secure more than 3,000 jobs in the U.S. related to the sale and manufacturing of the vehicles.
In the short run the good news is that H3 SUVs will be made in Shreveport along with the Chevy Colorado and GMC Canyon pickup trucks. The question remains how long does Hummer stay in Shreveport? After 2011 there are a lot of choices. GM could Hummer to stay. GM could shut the plant. The Chinese could buy the plant or move production to China.
Hummer will continue to be managed by members of its existing team including James Taylor, who will remain in his current role as chief executive officer. Prior to joining Hummer, Taylor was General Manager of Cadillac.
The transaction is subject to customary closing conditions and regulatory approvals and/or review by government agencies in the U.S. and China. The completion of the definitive agreement enables the companies to continue and further the overall regulatory review process.
Great news for the folks who work there. I just don’t understand why the Chinese are investing in this gas hog that hasn’t been re-designed in years. One of these days the price of gas is going to shoot up again and I don’t think Hummer is going to have much of an audience. But again, good for the workers.
GM Statement:HUMMER to Continue Middle East Operations Unchanged
Dealers will continue to sell and service HUMMER vehicles in the Middle East – Dealers will continue to honour all existing warranties – Spare parts will be readily available
Dubai, United Arab Emirates – HUMMER will continue to provide Middle East customers with the best off-road vehicles through its existing network of dealers, along with the region’s best customer care and parts availability. All current and future HUMMER warranties will also continue to be backed and honored. This confirmation follows the announcement of a definitive agreement for the sale of HUMMER reached on October 9 by General Motors and Sichuan Tengzhong, a major Chinese manufacturer of heavy machinery equipment. The agreement lays out the terms and conditions for the sale of HUMMER, and clears the way for the next step of the sale process. While this is positive news, it does not yet signify that the sale is complete. The transaction is subject to customary closing conditions and regulatory approvals and/or review by government agencies in the U.S. and China. Under the agreement, HUMMER will continue to contract vehicle manufacturing, key components and business services from GM for a transitional period. HUMMER will also continue to be managed by its existing leadership team, and dealer networks around the world will remain unchanged.
In the Middle East, best-in-class HUMMER vehicles include the seven-passenger HUMMER H2 and the award-winning midsize HUMMER H3 and H3T.
About HUMMER
HUMMER is the fruit of an agreement signed between General Motors and AM General back in December 1999. The iconic HUMVEE is the original HUMMER, the cornerstone of the brand. Its core values are still largely maintained in current HUMMER line-up, the most capable line-up of off-road vehicles that don’t compromise on luxury. In the Middle East, HUMMER’s line-up consists of the H2 which reflected an evolution of the brand making HUMMER more accessible to a wider civilian audience upon its launch in 2003; the midsize H3 that widened the brand’s appeal to a an even broader range of owners. The H3T with its pick up capabilities complete the line-up.
GM Statement: Hummer to Continue Middle East Operations Unchanged
Dealers will continue to sell and service Hummer vehicles in the Middle East – Dealers will continue to honor all existing warranties – Spare parts will be readily available.
Dubai, United Arab Emirates – Hummer will continue to provide Middle East customers with the best off-road vehicles through its existing network of dealers, along with the region’s best customer care and parts availability. All current and future Hummer warranties will also continue to be backed and honored.
This confirmation follows the announcement of a definitive agreement for the sale of Hummer reached on October 9 by General Motors and Sichuan Tengzhong, a major Chinese manufacturer of heavy machinery equipment. The agreement lays out the terms and conditions for the sale of Hummer, and clears the way for the next step of the sale process.
While this is positive news, it does not yet signify that the sale is complete. The transaction is subject to customary closing conditions and regulatory approvals and/or review by government agencies in the U.S. and China. Under the agreement, Hummer will continue to contract vehicle manufacturing, key components and business services from GM for a transitional period. Hummer will also continue to be managed by its existing leadership team, and dealer networks around the world will remain unchanged.
In the Middle East, best-in-class Hummer vehicles include the seven-passenger Hummer H2 and the award-winning mid-size Hummer H3 and H3T.
About Hummer
Hummer is the fruit of an agreement signed between General Motors and AM General back in December 1999. The iconic HUMVEE is the original Hummer, the cornerstone of the brand. Its core values are still largely maintained in current Hummer line-up, the most capable line-up of off-road vehicles that don’t compromise on luxury. In the Middle East, Hummer’s line-up consists of the H2 which reflected an evolution of the brand making Hummer more accessible to a wider civilian audience upon its launch in 2003; the mid-size H3 that widened the brand’s appeal to a an even broader range of owners. The H3T with its pick up capabilities complete the line-up.