OCTOBER 8, 2009
GM Expected to Seal Hummer Sale
By NORIHIKO SHIROUZU
BEIJING – General Motors Co. is expected to seal a deal as early as Friday to sell its Hummer unit to China's Tengzhong Heavy Industrial Machinery Co. for $150 million, according to people close to the talks—a high-profile acquisition China's central government could still balk at because of Hummer's reputation for gas-guzzling excess.
Tengzhong Chief Executive Yang Yi has flown to Detroit, where Hummer has headquarters, this week and is likely to be on hand to announce the deal with GM, according to these people.
They said the deal would allow Tengzhong, based in the western Chinese city of Chengdu in Sichuan province, to take over the Hummer brand and acquire the technology to produce its products: two hulking SUVs called H2 and H3.
The people said Tengzhong-owned Hummer would remain a U.S.-headquartered brand with manufacturing capability, although there is a possibility a Hummer factory will be built in China down the road to make the brand, currently focused on North America, a more global brand. The people said Tengzhong would retain Hummer's current management, led by CEO Jim Taylor, and take over core members of the brand's engineering team.
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