The deal with Tengzhong was thought to be the savior of the GM brand and about 3,000 jobs ranging from engineering, dealership, and manufacturing in the United States. The plan also had provisions for the Chinese company to infuse a ton of funding for future programs and products of HUMMER. This includes the possibility of the compact H4.

The chances of the sale weakened as a result of several factors. The sales figures of HUMMER are very poor plus the concern of the market today for the environment, and the economic meltdown. The left hook, right straight, uppercut combination was just too much and knocked out the deal.

GM assured the public that they will continue to honor warranties issued to HUMMER owners. You also don’t have to worry about spare parts and support if you are an owner of this hard edged metal truck.

The call for greener vehicles was one major factor with the declaration of Chapter 11 of General Motors serving as final blow to HUMMER.

The chance to save HUMMER is defined as impossibile. It is a clear flatline. We pay our respects.

HUMMER.

1999-2010.

The American car manufacturer has announced the inevitable fate of the Hummer brand mid of last year. Hummer suffered primarily because of the recession brought about by the global credit crunch. Sales also dropped due to growing concerns about the environment.

The two parties have signed a memorandum of understanding. The talks might enter the closing phase by the third quarter of 2009 where GM and the Chinese company will agree on the regulatory approvals.

Sealing the deal will mean about 3000 jobs in the US manufacturing sector, car dealerships, and engineering. The Tengzhong has also plans of injecting massive funding into the Hummer brand including production of a compact H4.

Upon execution of the memorandum of understanding, Tengzhong will be taking over the Hummer brand and have sets on the operations and senior management team. The Chinese firm will have a long term tie-up with GM as the key material supplier.

Hummer will still be headquartered in the United States and be led by its current leadership team. The brand is looking to expand its target market to include emerging ones like China.

Year in, year out the May 2009 sales of Hummer is about 62% lower with overall sales dropping by as much as 40% for Q1 and Q2. Dealers are not so pleased with how GM handled the situation but are hoping that the new brand owner will be able to get Hummer out of the deep hole it is in right now.

More GM Corporate news at GM Auto Blog.