Shanghai, June 25 (Gasgoo.com) Sichuan Tengzhong Heavy Industrial Machinery Co. will sign a formal deal with General Motors Corp on June 28 in the U.S. to acquire GM's Hummer brand, sina.com said yesterday.
Insider sources told the Chinese web portal that China's top economic planner and commerce ministry are very likely to approve this deal. The acquisition and payment will be carried out by Tengzhong's parent Sichuan Huatong Investment Holding Co, Ltd, 98.5% owned by Li Yan (Suolang Duoji), or by an overseas company of Huatong.
After buying the Hummer brand, Huatong is expected to choose the development zone of Deyang city, Sichuan province, as the site of the Chinese-made Hummer project. China No. 2 Heavy Machinery Group, Dongfang Electric Motor Co., Ltd., Dongfang Turbine Co., Ltd., and other large machinery manufacturers are also located there.
However, Huatong Investment chairman Zhang Zhigang told sina.com auto channel yesterday that "the specific contents of the Hummer deal are still being hammered out; the time and place (for the deal's signing) is undecided yet."
On June 2, a day after filing for bankruptcy, GM said it reached a tentative deal to sell its Hummer brand to private Chinese company Tengzhong Machinery, part of an effort to drop four unprofitable vehicle lines. Tengzhong promised to retain Hummer's senior management and operational team.
Based in the Chinese province of Sichuan, Tengzhong makes special-use vehicles, highway and bridge structural components, construction machinery, and energy facilities. The company will expand into the premium off-road vehicle segment.
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