General Motors has just released a statement acknowledging that talks have broken down between GM and China's Sichuan Tengzhong Heavy Industrial Machines Co. regarding the purchase of the Hummer brand. Because a deal could not be reached, GM will begin winding-down the Hummer brand.
Hummer and Tengzhong were previously having a difficult time of the purchase deal, following China's decision not to approve the purchase. Speculation that the decision would kill the deal altogether has proved to be accurate, with alternate plans - such as creating an off-coast shell company to purchase Hummer -- apparently being abandoned.
The complete GM release is below:
HUMMER Sale to Tengzhong Cannot be Completed -- Wind down of HUMMER business to begin
DETROIT - General Motors today announced that Sichuan Tengzhong Heavy Industrial Machines Co. Ltd. (Tengzhong) was unable to complete the acquisition of HUMMER. As a result, GM will begin the orderly wind-down of the HUMMER operations.
"One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed," said John Smith GM vice president of corporate planning and alliances. "GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner."
GM will continue to honor HUMMER warranties, while providing service support and spare parts to current HUMMER owners around the world.
Source: General Motors