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.

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.

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.

The two potential buyers are said to be a known Chinese company and a private-equity firm. They wanted to keep their profile to themselves for now, because the negotiation is taking place, privately.

General Motors, who still hasn’t released their annual profit starting 2004, placed Hummer on sale last June since their sales sank down with the increasing oil prices. The car company’s financial crisis worsened due to the global economic situation presently. This triggered also General Motors to seek federal loans from the US Treasury. They gave out their viability plan to the Treasury Department in order to keep their $9.4 billion US loans and to secure themselves another $4 billion.

According to a source, General Motors is aiming to accumulate $500 million from Hummer.

The Hummer is known to be a sport/utility truck. Each version of the vehicle model is revved up with engine configurations such as V8 6-liter. Some Hummer versions are able to produce 325 horsepower and is capable of releasing 365 lb-ft.

General Motor’s Hummer models are also equipped with different technologies for secure and efficient driving such as rear differential locks, electronic brake distributions and traction control via ABS, immobilizers and torsion beam front suspensions. Hummers also possess aerodynamics features with overall length of up to 189.8 inches and a width of 81.2 inches, and a ground clearance of approximately 79.2 inches.