GM Hummers could be produced by the Chinese

GM Hummers could be produced by the Chinese
GM Hummers could be produced by the Chinese - Sputnik International
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China's Tengzhong, which produces heavy machinery, plans to buy the right to produce Hummer off-road vehicles from troubled U.S. company General Motors, the firm has said.

BEIJING, June 3 (RIA Novosti) - China's Tengzhong, which produces heavy machinery, plans to buy the right to produce Hummer off-road vehicles from troubled U.S. company General Motors, the firm has said.

The Chinese corporation based in Sichuan said on Tuesday "a preliminary agreement has been reached" a day after U.S. motor giant GM filed for bankruptcy.

Tengzhong manufactures specialist-industry vehicles, highway components, construction machinery and energy equipment and operates "two Chengdu-based manufacturing plants in Xinjin Fine Chemical Industrial Park and Southwest (Hangkonggang) Industrial Park," and according to the firm's website is "one of China's major engineering companies."

Yang Yi, CEO of Tengzhong, said on the deal: "We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S."

In line with the agreement, Hummer, which will continue to have its headquarters based in the U.S., and will still be managed by its current leadership team.

Earlier it was reported that the Hummer brand could fetch around $500 million, although it is expected to make far less after the carmaker was hit by financial woes. The deal is expected to be struck in the third quarter.

GM has submitted a bankruptcy application to a New York court. The White House said it will grant the company an additional $30.1 billion for a 60% stake. Analysts say the sale of the Hummer brand is part of the corporation's versatile restructuring.

Following protracted talks the German government and Magna International, backed by Russia's Sberbank and GAZ, struck a deal early on Saturday to take over GM's Opel operations in Europe.

Magna, Canada's largest auto-component producer, will acquire a 20% stake in Opel with Russia's state-owned Sberbank and car maker GAZ, owned by billionaire Oleg Deripaska, taking a 35% slice to make the consortium a majority shareholder.

 

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