Detroit, MI (AHN) - Hummer, the General Motors brand made famous during the first Iraq war but shunned once gasoline rose to record high prices, has been sold to Chinese firm Sichuan Tengzhong Heavy Industrial Machinery Corp.
Tengzhong will get ownership of the Hummer brand and trademarks, but the vehicle will continue to be made at GM plants in Louisiana and Indiana at least until June 2011.
The purchase price was not revealed, but GM valued the brand at $500 million during bankruptcy proceedings earlier this year. Bloomberg and Marketwatch reported the sale price to be $150 million.
Tengzhong will hold an 80 percent stake in Hummer through an investment entity. The remainder will be owned by private entrepreneur Suolang Duoji.
In a joint statement, GM said an alternative fuel power train will be offered in every model. The 2010 H3 and H3T models also will have E85 FlexFuel capability that allows the vehicles to run on any type of gasoline up to 85 percent ethanol.
The sale is expected to save more than 3,000 American jobs. Tengzhong said it will retain all Hummer dealerships, as well as the current corporate leadership.
by Melvin Baker - AHN Reporter
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