Tuesday, June 2, 2009
China's Sichuan Tengzhong Heavy Industrial Machinery says it plans to buy General Motors' Hummer brand for an undisclosed sum.
Tengzhong is a privately held maker of road, construction and energy industry equipment based in the Chinese province of Sichuan.
As part of the deal, the company is expected to sign a long-term contract assembly and component and material supply agreement with GM.
If the deal is successful, GM says it expects it to save about 3,000 jobs.
Hummer will keep its existing management team and remain based in the United States. Tengzhong says it expects to expand the brand's dealer network worldwide, especially to China.