After General Motors announced this morning that it has reached a tentative agreement with a potential buyer for its all-American Hummer brand, news comes from China that the buyer is Sichuan Tengzhong Heavy Industrial Machinery Company, a heavy industry manufacturer looking to get into the car-building business.
The report comes from the New York Times, which spoke to an anonymous source who said the Chengdu, China, company is Hummer’s suitor. The paper estimates that Sichuan Tengzhong will pay less than $500 million for Hummer.
Sichuan Tengzhong is privately held, but Chinese officials are allowed to veto any overseas acquisition by a Chinese company. The company is best known in China for manufacturing heavy-duty trucks like tankers and tow trucks, but it also builds everything from construction materials to highway maintenance machinery.
Hummer’s public relations chief, Nick Richards, said that he was pleased with the sale.
“If you think about the qualities we’d want in a new owner for the brand, this buyer really met all the criteria,” Richards told the paper. “They’ve got a proven track record in international business, and they’ve got a long-term vision for the brand. They’ve got the capital to invest in more efficient vehicles, which is what’s necessary to grow the brand.â€
There’s no official comment out of Detroit about Sichuan Tengzhong. The deal would be the first-ever American car brand sold to China; companies in the Asian nation currently own British brands MG and Rover, however.
