UPDATED 12:15 pm
DETROIT (AP) - General Motors Co. says it has signed an agreement to sell control of its iconic Hummer brand to a Chinese heavy equipment maker.
The company says that Sichuan Tengzhong Heavy Industrial Machinery Co. will acquire 80 percent of the Hummer brand, trademarks and trade names plus intellectual property rights needed to build Hummer vehicles.
The remaining 20 percent will go to Suolang Duoji, a private entrepreneur.
Financial terms were not disclosed.
The investors also will get Hummer's nationwide dealer network.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
SHREVEPORT, LA (KSLA) - The sale of the struggling Hummer brand could actually bring job security to the 950 local employees. "It's good news for the plant here in Shreveport," says Local UAW President Doug Ebey
General Motors only sold close to 400 Hummers nationally in September and with the low demand Ebey says GM was planning on shutting down operation of the H3 and H3T pickup here at the Shreveport plant later this year. A sale could change that fate.
We're not sure what we are going to be looking at in the future, but I think there should be some sense of relief," said Ebey.
Ebey says the new Chinese buyer could breathe new life into the Shreveport plant. "With this company purchasing the hummer brand, we could have more orders coming in and more products to build."
Sichuan Tengzhong's CEO said it would keep Hummer's headquarters and operations in the U.S. at least at first.