GM signs off Hummer deal
October 11, 2009, Sunday
|
Print Edition
Print Edition
GENERAL Motors and Chinese Sichuan Tengzhong Heavy Industrial Machinery Co Ltd have announced an agreement that will allow Tengzhong to acquire GM's premium all-terrain Hummer brand.
Under the terms announced on Friday in Chicago, United States, Tengzhong will acquire the ownership of the Hummer brand, trademark and tradenames as well as specific IP license rights. The Chinese firm will also assume the existing dealership network agreements.
Tengzhong will purchase Hummer through an investment entity, in which it will hold an 80 percent stake. Suolang Duoji, a private entrepreneur will hold the remaining 20 percent stake. Financial terms of the agreement were not disclosed.
The agreement does not mean that Tengzhong has managed to acquire the legendary brand as the transaction is subject to regulatory approvals or review by government agencies in the United States and China.
China's Ministry of Commerce said yesterday it has not received any application from Tengzhong over the deal.
Fritz Henderson, GM president and CEO, applauded the deal saying that "this agreement signifies another important milestone in writing the next chapter for both GM and Hummer."
Yang Yi, chief executive officer of the buyer, was confident about the deal, saying he believed the "investment will be able to accelerate ... the creation of the next generation of more fuel-efficient vehicles."
Hummer would contract vehicle manufacturing, key components and business services from GM during a defined transitional period.
Under the terms announced on Friday in Chicago, United States, Tengzhong will acquire the ownership of the Hummer brand, trademark and tradenames as well as specific IP license rights. The Chinese firm will also assume the existing dealership network agreements.
Tengzhong will purchase Hummer through an investment entity, in which it will hold an 80 percent stake. Suolang Duoji, a private entrepreneur will hold the remaining 20 percent stake. Financial terms of the agreement were not disclosed.
The agreement does not mean that Tengzhong has managed to acquire the legendary brand as the transaction is subject to regulatory approvals or review by government agencies in the United States and China.
China's Ministry of Commerce said yesterday it has not received any application from Tengzhong over the deal.
Fritz Henderson, GM president and CEO, applauded the deal saying that "this agreement signifies another important milestone in writing the next chapter for both GM and Hummer."
Yang Yi, chief executive officer of the buyer, was confident about the deal, saying he believed the "investment will be able to accelerate ... the creation of the next generation of more fuel-efficient vehicles."
Hummer would contract vehicle manufacturing, key components and business services from GM during a defined transitional period.
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