GM finalises Hummer deal

China's Sichuan Tengzhong Heavy Industrial Machinery Co has entered into a definitive agreement with General Motors (GM) to acquire its all-terrain Hummer brand.

Under the terms of agreement, Tengzhong will take ownership of the entire Hummer brand, including trademark, trade names, existing dealer agreements and specific IP license rights to manufacture the Hummer vehicle.

Tengzhong said it plans to purchase Hummer through an investment entity in which it will hold an 80 per cent stake with the remaining 20 per cent owned by thenardite manufacturer, Lumena.

Fritz Henderson, president and chief executive at GM, said: 'Hummer is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and Hummer.'

GM said that its Shreveport and AM General's Mishawaka assembly plant would continue to contract assemble the H3, H3T and H2 models until June 2011, with an optional one-year extension until June 2012.