GM, Tengzhong to Finalize HUMMER Deal This Week

Sun, Aug 30, 2009

Hummer News

GM LogoGeneral Motors and China’s Tengzhong are expected to reach definitive agreements this week according to those familiar with the matter (We think Bloomberg may have been a week off!).

Once the agreements are finalized, all negotiations will cease and the deal will be submitted to regulatory bodies in the United States and China. There was some speculation on whether the Chinese government would be keen on such a purchase, but officials have also said it is normal for acquisitions of this type in a down economy.

Several more executives from China will be arriving in Detroit this week, and “If there are no big surprises, an agreement could be finalized next week,” one insider told Reuters under the promise of anonymity.

Last week, the major contents of the deal were leaked in Beijing, and include plans to bring the HUMMER H4 into production by 2012.

[Reuters]

Comments are closed.