General Motors has sold off its iconic Hummer brand. Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd.(Tengzhong), a chinese company has accquired an 80% stake in Hummer. The remaining stakes will be held Suolang Duoji by a private entrepreneur Suolang Duoji. According to an agreement signed between the two companies, the new owner of the Hummer brand will also get dealership rights pertaining to the existing network, trademarks, tradenames and certain IP license rights.The agreement also includes a clause that Hummer would contract business services,manufacturing of vehicles and key components from GM during a pre-defined time phase in the transitional period.The Hummer brand will also continue to be managed by the existing management team.
James Taylor, existing CEO,Hummer said that they are fortunate to have a partner who understands and recognizes the importance of continuing investment in Hummer’s heritage as a US-based and branded company with a view toward capitalizing on global opportunities. According to Yang Yi,CEO,Tengzhong,the transaction marks an exciting step for both Hummer and Tengzhong.He believes their investment will be able to accelerate the creation of next generation of fuel efficient vehicles to meet not only future regulations but also customer expectations.