General Motors’ Opel sale may have a few more kinks to work out before it is officially sealed, but Hummer’s new owners – China’s Sichuan Tengzhong Heavy Industrial Machinery – says it plans to complete its acquisition of the off-road marque by the end of the third quarter.
The company also revealed that it has no plans to shift Hummer’s production from the United States to China. When the Hummer deal was originally penned, it was widely believed that Sichuan Tengzhong would move the brand’s production to China to save on labor costs.
Yang Yi, the company’s general manager, says the decision was made to keep Hummer’s production in the U.S. to ensure high levels of quality. Sichuan Tengzhong will also retain much of Hummer’s management as it has very little knowledge of the auto industry. Sichuan Tengzhong mostly produces special-use vehicles and highway and bridge components, according to Automotive News.
Although Sichuan Tengzhong will be holding on to most of Hummer’s employees, it won’t be taking on any of the company’s debt. Details of the deal are being kept private — including Hummer’s final selling price — but we should know more by October.
