Skip to Content

GM confirms talks to sell Hummer brand to Chinese firm

Text SizeAAA

Filed under: Company News

More

A day after filing for bankruptcy protection, General Motors has announced a preliminary deal to sell its Hummer brand that is expected to save more than 3,000 U.S. jobs.

After several hours of mystery concerning who might buy the iconic brand, GM confirmed late Tuesday that it is in advanced talks to sell it to China's Sichuan Tengzhong Heavy Industrial Machinery Company. Terms of the deal are still being negotiated, but GM expects to close the sale by year's end.

"I'm confident that Hummer will thrive globally under its new ownership," said Troy Clarke, President of GM North America. "And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker."



The sale of Hummer will mark a significant strategy change for GM as it ditches the gas guzzling, military-esque SUV and prepares to reopen a shuttered U.S. factory to build compact cars. Production at this plant will create the smallest vehicles the company has ever produced domestically.

On Monday, CEO Fritz Henderson said the company would emerge from bankruptcy as a stronger and leaner company, but time will tell whether GM is truly able to compete against foreign automakers. This will be key in leading GM forward and was one of many reasons that led to its fall.

General Motors is also in the process of trying to unload its Saturn and Saab brands. In late April, the company announced that it would kill off its Pontiac brand.

Reader Comments (Page 1 of 7)

Interest Rates

5/1 ARM4.06%APR: 3.75%
30 Yr.
Fixed Mort.
5.03%APR: 5.16%
$30K
HELOC
8.00%APR: 0.00%
30 Mo
New Car Loan
6.77%APR: 0.00%
1 Yr. CD1.57%APR: 1.58%
DailyFinance Writers
Melly Alazraki Melly Alazraki Financial writer and analyst
James Altucher James Altucher Financial columnist
Jeff Bercovici Jeff Bercovici Media columnist
Jonathan Berr Jonathan Berr Financial writer and media columnist
Mercedes Cardona Mercedes Cardona Retail reporter
Tim Catts Tim Catts Financial writer
Peter Cohan Peter Cohan Author, venture capitalist and financial writer
Carrie Coolidge Carrie Coolidge Financial writer
Lita Epstein Lita Epstein Financial writer
Sam Gustin Sam Gustin Technology Writer
Nikhil Hutheesing Nikhil Hutheesing Tech and investing editor
Joseph Lazzaro Joseph Lazzaro Markets and economics writer
Latif Lewis Michelle Leder Financial Columnist
Latif Lewis Latif Lewis Business news editor and management columnist
Anthony Massucci Anthony Massucci Senior writer and tech columnist
Doug McIntyre Doug McIntyre Business and investing news writer and editor
Michael Mercurio Michael Mercurio Managing Editor
Todd Pruzan Todd Pruzan Features editor
Michael Rainey Michael Rainey Editor and economics writer
Alex Salkever Alex Salkever Senior technology writer
David Schepp David Schepp Business News reporter
Matthew Scott Matthew Scott Investing reporter and editor
Dan Solin Daniel R. Solin Author, investment advisor and retirement expert
Amey Stone Amey Stone Executive editor
Bruce Watson Mark Svenvold Columnist, renewable energy
Russel Turk, M.D. Russell Turk, M.D. Healthcare policy columnist
Bruce Watson Bruce Watson Features Writer
my portfolios

Find out why more people track their portfolios on AOL Money & Finance than anywhere else.

Create a New Portfolio My Portfolios

Daily Finance Partners

More from the Weblogs Network