It’s done – HUMMER has been sold to a relatively unknown Chinese company called Sichuan Tengzhong Heavy Industrial Machinery or rather just simply Tengzhong. The sale includes the HUMMER brand, trademarks, tradenames, and the intellectual property rights necessary to manufacture HUMMER vehicles. Dealer agreements with the existing HUMMER dealership network will also be transfered to the investment vehicle which will buy HUMMER. Tengzhong owns 80% of this takeover vehicle while a private investor Suolang Duoji holds the remaining 20%.
The transaction does not involve the transfer of any technology related to U.S. military HUMMERs or Humvees. What they’re getting is the “domesticated” models like the H2, H3 and H3T. With the new capital to be injected by Tengzhong, HUMMER will work on smaller and more efficient vehicles like a production version of the HX Concept.
Under the agreement, GM’s Shreveport assembly plant would continue to contract assemble the H3 and H3T and AM General’s Mishawaka assembly plant will continue to assemble the H2. Both facilities will produce the vehicles until June 2011, with an optional one year extension until June 2012.
After that it’s pretty much anyone’s guess what will happen to these plants, but you can probably expect production to be moved to China, or at least a new production base to be set up there in complements to the US plants.