Chinese private firm to buy Hummer brand

A Hummer is on sale at a dealer in Flint, Michigan, the United States, May 30, 2009.(Xinhua/Gu Xinrong)

Sichuan Tengzhong Heavy Industrial Machinery Co. is negotiating with General Motors Corporation about purchase of the Hummer brand, disclosed the Chinese private heavy machinery producer.

If both sides reach accord, they still need the approval of related regulators. The deal will possibly be completed in the third quarter of 2009. After that, the Chinese private heavy machinery producer is expected to obtain the utilization right of enjoy the Hummer trademark, lead the existing top management and operation team, and undertake all contracts upon the Hummer distribution.

The US auto giant stressed that the deal would possibly ensure more than 3,000 jobs concerning the production, development, and distribution of the Hummer brand across the US.

Tengzhong Heavy Industrial Machinery was incorporated in January 2005 in Chengdu, capital of the southwestern Chinese province of Sichuan. It has made a strong presence in several fields, such as road and bridge, engineering machinery, and energy equipment.