General Motors will sell its Hummer brand to China’s Sichuan Tengzhong Heavy Industrial Machinery Corporation. This deal, which still needs to be approved by regulators, is expected to preserve more than 3,000 sales and manufacturing jobs in the U.S.
GM will continue to make the military-styled sports utility vehicle until June 2011, with an optional one-year extension. The purchase price was not disclosed but was speculated to have sold for $150 million.
Through September, GM had sold only 8,193 Hummers this year, down 64% from last year. Only 426 Hummers were sold in September, which isn’t a good sign. GM still has a myriad of challenges in front of it if it wants to emerge successfully from bankruptcy.
Consumers may be shunning GM products due to resentment of the U.S. government’s involvement. GM’s U.S. sales plunged 36% during the first nine months of 2009. Total industry sales have fallen 27% over the same period. The annual U.S. sales rate in September of 9.51 million vehicles remained near 27-year lows.