DETROIT — General Motors said Wednesday afternoon that its deal to sell the ailing Hummer brand to an obscure Chinese firm, Tengzhong Heavy Industrial Machines, had collapsed and that it would begin winding down Hummer operations.
Last year, GM announced plans to divest the Hummer brand as part of a broader move to slash its product portfolio, leaving the company with just four major brands in North America — Buick, Cadillac, Chevrolet and GMC. As part of that move, GM phased out Pontiac, shut down Saturn after a proposed sale to the Penske group fell through and just this week closed a deal to sell Saab to Spyker.
On Wednesday, GM said it was "unable to complete" the deal to sell Hummer to Tengzhong. Under that transaction, announced last June, the Sichuan-based industrial group reportedly agreed to pay GM $150 million to acquire the rights to the Hummer brand and product line.
As part of the deal, GM's Hummer management team was to transfer to Tengzhong, while GM said it would continue building H2 and H3 models for the Chinese company, which builds heavy industrial vehicles, mostly for off-highway use. Tengzhong also was to take over the existing Hummer dealer network.
In October, GM said it had signed a "definitive agreement" with Tengzhong and set a January 31 deadline to close the deal.
The deadline was pushed back to late February, but media reports last week from China indicated the central government authorities in Beijing had rejected the deal.
In a statement Wednesday, GM said it was "disappointed that the deal with Tengzhong could not be completed." The automaker said it "will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner."
GM said it would continue to honor Hummer warranties and provide service and parts to existing Hummer owners.
Inside Line says: Hummer was near death's door a year ago. GM's dance with Tengzhong may have simply prolonged the brand's misery. — Paul Lienert, Correspondent
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biodefect says:
03:07 AM, 05/11/2011
Hummers had elevated vibrations, as most new GM models, which is a bio-mechanical defect, check out the new 2006 study, "The First American Conference on Human Vibration", myself and a couple of Hummer owners suffered unexplained injuries from prolonged exposures of elevated vibration, unexplained profound headaches, and other neurological issues.
No wonder it is being discontinued and GM is in bankruptcy, poor biomechanical qualities...
If you or someone you know had experienced profound headaches, unexplained injuries of joints , musculoskeletal injuries, email me with your contact info. as i am in the process of filing a class action suit, so these automakers will build their products more carefully and responibly, with low emissions, so we human consumers could live a longer life with less injuries.
My email is "mildewproofing@aol.com" i am a concerned individual...
Prolonged exposures from elevated vibrations felt in the chasis or steering wheel, can kill you, cause injuries and unexplained illnesses and death.
Thank you and may God Bless You
windfallangel says:
10:43 PM, 09/19/2010
windfallangel says:
10:32 PM, 09/19/2010
The Hummer is a very unique SUV, truly a one of a kind automobile it has been used successfully in conquering all types of terrain from water bogged swamps to foreign sands in way off places and foreign lands not many SUV can carry those bragging rights. Hummer is a SUV that can carry a convoy across any terrain or your kids safely to school. It would be a sad lost to see such a great automobile lost for lack of funds to carry on the brand.I hope maybe it's enployee's or the Army might purchase it since it is their SUV of record.It 's bad gas mileage could be corrected which is it's only bad vice clean diesel would fix that . However I do hope they keep trying to find new owners & owner(s) can find ways to bring the cost(s) down lower were more of us can afford the unique one of a kind automobile .This a SUV with a little work could be a big seller.Everyone looks and wishes they had one.Perhaps with diesel and a lower sticker price it would beat Jeep!
forgeryfade says:
10:36 AM, 09/13/2010
boo
dmisa66891 says:
04:29 AM, 02/26/2010
As the owner of an H3 to all you gas guzzler commentors out there my wife's Escalade is no better on gas than my H3.If you would take some time and do a little research to find there are organizations(HOPE)(Hummer Owners Prepared for Emergencies)that I am proud to be a member of that uses our vehicles to help people in times of need because of the capabilities of the vehicle.Transporting key personel or helping people during snow storms, floods etc..It requires Red Cross (CPR and First Aid)training among other things to allow you to become a member.I also bought it because of the location we live in and I am sure on more than one occasion people were happy to see me when I stopped to pulled them out of a ditch.Some of us bought it for the capabilites not the status.
atenza94546 says:
01:22 PM, 02/25/2010
With all the trade war going on around the world. You think other countries are will to invest into U.S. company anymore.
Hummer, Saturn, should be Buick not Pontiac should let it rest in peace.
delraylocal says:
11:07 AM, 02/25/2010
I don't like Hummers and never have (except the kind that come from my GF), but what I really hated was the people who drove them.
I live in South Florida and they were a dime a dozen driven by either:
A- Women who wanted to feel tough and powerfull.
B- Dudes with small weiners.
C- Guido "Jersey Shore types."
Also what's up with all these Saab fans on here?
A guy at my work has one and we all rag on him for it. It is such a feminine, little pansy mobile.
xoquixxoqafxo says:
09:04 AM, 02/25/2010
THANK GOD. WE DON'T NEED THESE GAS HOGS ON THE ROAD ANYMORE! In the beginning Saab should have been sold first but i am glad they are safe. Saab has alot of potential to be a great brand again. Hummer just needed to die from the day that GM released the fat H2 in 2003. GOOD RIDDENCE HUMMER!
angry_mushroom says:
11:31 PM, 02/24/2010
Well... I didn't expect this to happen. Then again I'm very happy Saab is still alive, while Hummer died away. I just wish Saturn was still around. Not fantastic cars, but at least reliable.
mirde98 says:
08:59 PM, 02/24/2010
Thank God Saab survived. Dont care a bit for Saturn, Pontiac and Hummer. Glad to see them go. Next!!!
jonthecarguy says:
08:41 PM, 02/24/2010
Sorry to say, but as long as Saab is safe...I'm happy.