Hummerblog

It has been on the news for several months now but finally the talks between Hummer and Chinese company Sichuan Tengzhong has reached an agreement. General Motors inked the deal with Tengzhong which allows the latter to acquire the premium brand Hummer.

Hummer is a very strong brand when it comes to the all terrain vehicle brands, and the deal with the Chinese company marks a milestone for both General motors and Hummer. The brand is seeing a bright future ahead with the management and design expertise of Hummer that will be utilized with the capital coming from Tengzhong.

The Hummer brand has known to be among the leaders of the American pack, but owners of Hummer need not worry about the acquisition. The Chinese company will keep the global head office of Hummer near Detroit since Michigan issued a tax credit of about $20.6 million to the new owners.

The management team of Hummer including its current CEO will be kept. Manufacturing of the units will be executed through contracts with General Motors using the existing Hummer factories. These agreements secured about 3,000 jobs in the U.S. The Louisiana plant will keep the assembly of the H3 and the upcoming H3T while the H2 will still be done in Mishawaka possibly until 2012.

The management of Sichuan Tengzhong is very optimistic about the Hummer brands. They are looking forward for more efficient Hummers of the future which will be able to meet the stricter fuel regulations of the future. There are plans to implant the E85 Ethanol flex capability to the entire Hummer fleet.