The albatross around General Motors’s neck known as Hummer is about to be unloadedBloomberg reports Chinese heavy machine manufacturer Sichuan Tengzhong will be buying the brand.possibly as early as this week.
Executives from the Sichuan Tengzhong are expected to visit Detroit for more negotiations with General Motors and possibly to dot the i’s and cross the T’s. Although it appears that both governments will okay the deal, the BBC reported in June that the National Development and Reform Commission in China said it would block the sale on environmental grounds. The organization also accused Tengzhong not having the expertise to manufacture passenger cars. Meanwhile, the National Business Daily, a Chinese newspaper, reports that the Ministry of Commerce is set to approve the deal.
Any agreement achieved by GM and Sichuan Tengzhong has to be approved by the U.S. and Chinese governments.
Hummer has taken the wrath of many environmental groups and people who drive them have been subject of some verbal abuse. Still, it is said that the sports utility vehicle has very loyal, devoted supporters.
Hummer headquarters is expected to remain in the U.S. Several locations have been considered including Detroit and Nashville, Tennessee. The current CEO of Hummer, Jim Taylor, will remain at that post.
It is also expected that once the sale goes through, Hummer will have 100 or fewer employees.