Chinese Take-Over of Hummer
Hummer H3 Adventure
General Motors >
3rd June, 2009
Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd
(Tengzhong) and General Motors Corporation (GM), have confirmed details of their proposed transaction,
pursuant to which, Tengzhong, a major industrial machinery group, will acquire the rights to the Hummer
brand, along with a senior management and operational team. It will also assume existing dealer
agreements relating to Hummer’s dealership network. It is contemplated that Tengzhong will, as part of
the transaction, enter into a long-term contract assembly and key component and material supply
agreement with GM. The final terms of the deal are subject to final negotiations.
Based in the Chinese province of Sichuan, Tengzhong is a privately-owned company and a leading
domestic manufacturer of road, construction and energy industry equipment. It will expand into the
premium off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a
catalyst for Hummer’s growth in the U.S. and around the world.
“The Hummer brand is synonymous with adventure, freedom and exhilaration, and we plan to continue
that heritage by investing in the business, allowing Hummer to innovate and grow in exciting new ways
under the leadership and continuity of its current management team,” said Yang Yi, CEO of Tengzhong.
Mr. Yang continued, “We will be investing in the Hummer brand and its research and development
capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient
vehicles in the U.S.”
Hummer will continue to maintain its headquarters and operations in the U.S., and will continue to be
managed by its existing leadership team. The team intends to expand Hummer’s dealer network worldwide,
particularly into new and under served markets such as China.
"Today Hummer is a globally recognised brand with excellent growth prospects, both in terms of new
markets and new products for our existing markets,” said James Taylor, Hummer chief executive officer.
“With Tengzhong’s investment and strong support, we will be able to make our visions a reality. This
transaction, if successful, will secure more than 3,000 U.S. jobs, and allow us to embark on a more
aggressive global expansion, ensuring a successful future with our new partners.”
The transaction is expected to close in the third quarter of this year and is subject to customary
closing conditions and regulatory approvals. Financial terms of the agreement have not been