By Drew Johnson
Tuesday, Nov 17th, 2009 @ 10:31 am

Although General Motors has yet to complete the sale of its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. – the deal is expected to be finalized by December 1 — the Chinese truck maker is already planning at least two smaller models for the iconic off-road brand.
Hummer has seen a significant drop-off in sales over the last two years – mainly due to the brand’s gas guzzling image – but the brand’s new Chinese owners are planning to change Hummer’s public perception through the launch of two new fuel-efficient models.

Per the terms of the agreement, GM’s deal with Tengzhong gives the Chinese company access to the engineering work already done on Hummer’s H4 model. The H4 was previewed in concept form as the HX at the 2008 Detroit Auto Show.

Speaking with Automotive News, Hummer CEO Jim Taylor revealed the production H4 is planned to hit the market in about three years. The smaller H4 would offer better fuel economy than the larger H3 and would also give Hummer an answer to the Jeep Wrangler .

A year or two later, Hummer is planning to launch an even more compact H5 model. The H5 will retain Hummer’s off-road status but will place a heavy emphasis on fuel economy. In fact, Taylor says Hummer is working on hybrid and even all-electric drivetrains. However, a lot of work has to be done between now and the middle of next decade, but look for more environmentally friendly Hummer models to surface in dealers within a few years.

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