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    General Motors agrees to sell Hummer brand to China's Tengzhong

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    General Motors signed a deal on Friday to sell its Hummer SUV brand to Chinese heavy equipment maker Tengzhong for an undisclosed sum.

    MOSCOW, October 9 (RIA Novosti) - General Motors signed a deal on Friday to sell its Hummer SUV brand to Chinese heavy equipment maker Tengzhong for an undisclosed sum.

    Sources close to the deal earlier quoted a figure of around $150 million.

    Sichuan Tengzhong Heavy Industrial Machinery Co. will receive an 80% stake in Hummer, while Hong Kong investor Suolang Duoji will hold 20%.

    The companies said in a statement that the deal has yet to be officially approved by U.S. and Chinese regulators.

    General Motors was declared bankrupt in June this year, marking the biggest industrial insolvency in United States history. It is now majority owned by the U.S. Treasury and the Canadian government. The company had made an $81 billion loss over a four-year period.

    The sale of Hummer to the Chinese company has been seen as a major victory for GM.

    Demand in the U.S. for Hummers, originally developed for military use, has plummeted due to rising gasoline prices and the car's image as environmentally harmful. A Hummer releases around three times more CO2 than an average car.

     

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