General Motors of the United States said on the 2nd that it had reached a preliminary agreement with Sichuan Tengzhong Heavy Industrial Machinery Company of China to sell the latter its famous off-road vehicle brand, Hummer.
Tengzhong Heavy Industry verified on the same day that it was engaging in deep negotiations with General Motors over the acquisition of Hummer.
General Motors will take an important step towards reorganization through the sale of Hummer. The American automotive giant also announced that there were already multiple potential buyers for two other brands under its wing, namely Saturn and Saab.
Preliminary Agreement
General Motors issued a statement on the same day saying that it had reached a memorandum of understanding with Tengzhong Heavy Industry.
According to General Motors, Tengzhong has agreed to retain Hummer's senior management and operations team, while also planning to negotiate long-term contracts with General Motors regarding the assembly of Hummer vehicles, key components, and material supply.
The statement did not mention specific contract amounts or other details.