Tengzhong said to seal Hummer deal next week

Shanghai, August 28 (Gasgoo.com) China's Tengzhong may finalize a deal with General Motors as early as next week to acquire the U.S. automaker's Hummer brand, Reuters reported today, citing a source familiar with the deal.

Chinese industrial manufacturer Sichuan Tengzhong Heavy Industrial Machinery has been in detailed talks with GM since it announced a tentative plan in early June to take over the rights to the premium SUV Hummer brand from its U.S. owner.

"Tengzhong executives have been traveling between the U.S. and China in the past months and more will arrive in Detroit soon," said the source. "If there are no big surprises (if nothing unexpected happens), an agreement could be finalized next week."

Tengzhong is expected to maintain Hummer's existing senior management and operational team as it previously promised, the source said. It will also keep the dealership network of the U.S. SUV unchanged.

The agreement will be subject to U.S. and Chinese regulatory approval before it will take effect. Chinese regulators will decide whether or not to approve the plans after the Hummer deal is finalized, the source said. 

Bloomberg News reported on Monday that Tengzhong executives were expected to arrive in Detroit early this week for more talks with GM and an agreement could be signed and announced during the trip.