General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) have just announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM’s premium all-terrain Hummer brand.
Under the terms of the definitive agreement, the buyer will acquire the ownership of the Hummer brand, trademark and tradenames, as well as specific intellectual property license rights necessary for the manufacture of Hummer vehicles. The buyer will also assume the existing dealer agreements relating to Hummer’s dealership network.
Tengzhong will purchase Hummer through an investment entity, in which it will hold an 80% share. Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed nardite producer Lumena, will have the remaining 20%.
Financial terms of the agreement were not disclosed.
“This transaction marks an exciting step for both Tengzhong and Hummer, as we invest in a business that has significant opportunity in the U.S. and around the globe,” said Yang Yi, chief executive officer of Tengzhong. “We are excited about some of the initiatives already underway at Hummer that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel-efficient vehicles to meet not only future regulations but also customer expectations.”