A report out of Detroit indicates that General Motors could finalize a deal with China’s Sichuan Tengzhong Heavy Industrial Machinery Corporation over the sale of off-road-oriented truck and SUV manufacturer Hummer as early as today.
An unnamed source told the AP that the deal could be wrapped up this afternoon, although Hummer’s representatives would not make a comment. The Chinese heavy machinery company’s employees have been in Detroit for more than a week as they try to fine tune the last-minute details of their planned acquisition of Hummer.
The Chinese are expected to pay somewhere in the neighborhood of $500 million for Hummer and, thanks to a $20.6 million tax incentive, they are expected to set up a new headquarters for the freshly-independent manufacturer in Detroit. Sichuan Tengzhong would acquire the Hummer brand, access to its dealership network and current and future products. The Chinese company would not purchase South Bend, Indiana-based AM General LLC, which builds military Hummers.
