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GM sells Hummer brand

Private investor gets 20% stake

Last Updated: Friday, October 9, 2009 | 2:09 PM ET

CBC News

General Motors has agreed to sell its Hummer brand to a Chinese company, the automaker announced Friday.

Sichuan Tengzhong Heavy Industrial Machinery Corp. will get an 80 per cent stake in the brand plus the intellectual property rights for it to build Hummers while the remaining 20 per cent would go to Suolang Duoji, a private entrepreneur.

Motors Liquidation Company, which holds the bankrutcy assets of GM, 3-month chart.Motors Liquidation Company, which holds the bankrutcy assets of GM, 3-month chart.

The price was not disclosed but GM had said in its bankruptcy filing this summer that Hummer might bring $500 million US or more. The deal also gives the investors Hummer's nationwide dealer network.

The deal must still be approved by Chinese and U.S. regulators.

GM has received about $50 billion in U.S. government aid. The company also plans to sell its Saab brand, scrap Pontiac and Saturn and focus on Chevrolet, Cadillac, Buick and GMC.

Sichuan Tengzhong announced a tentative deal in July with GM to buy the brand, which features large off-road vehicles that initially were developed for military use.

The original military versions of Hummer are still made by AM General LLC and are not affected by the deal.

The Michigan Economic Development Authority in September approved a $20.6-million state tax credit over 10 years for Hummer to build a headquarters in the Detroit area.

With files from The Associated Press
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