Chinese Hummer deal

General Motors (GM) has named the outfit that is to acquire its Hummer brand of vehicles, along with the division's senior management and operational team.

Sichuan Tengzhong Heavy Industrial Machinery (Tengzhong), a major industrial machinery group, will acquire the rights to the brand and assume existing dealership network agreements.

It is contemplated that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM.

In an earlier statement, GM said it expects the deal, if successful, to secure more than 3,000 US jobs.

The final terms of the deal are subject to final negotiations.

Based in the Chinese province of Sichuan, Tengzhong is a privately owned company and a domestic manufacturer of road, construction and energy industry equipment.

'We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the US,' said Yang Yi,chief executiveofficerof Tengzhong.

Hummer will continue to maintain its headquarters and operations in the US, and will continue to be managed by its existing leadership team.

The team intends to expand Hummer's dealer network worldwide, particularly into new and underserved markets such as China.

The transaction is expected to close in the third quarter of this year, and is subject to customary closing conditions and regulatory approvals.

Financial terms of the agreement were not disclosed.