GM had expected to close the sale of HUMMER to Tengzhong by the end of September, and those familiar with the matter say that meeting that self-imposed goal is “looking less likely.”
According to those sources, GM may have been “overly optimistic” given all the deals GM is currently trying to close.
We suspect most of the major sale terms have already been negotiated, and in a deal as complicated as this, making small wording changes on one side requires a complete legal review by the other party. This back-and-forth is quite typical in major acquisitions, and considering the massive asset liquidation of GM going on right now, legal reviews that usually take only one day could be taking several.
While GM is still working to close the deal as soon as possible, they have not released any new timeline on completing the deal.
For most, a few more weeks may not be a big deal. For others, such as smaller HUMMER dealers who haven’t had new inventory in months, the waiting game may be too much of a financial risk. Hopefully we won’t see any more dealer closings before a deal is complete.