GM to Close Down Hummer
The end of the Hummer era is coming. General Motors announced on Thursday that a deal that would have allowed Chinese company Tengzhong Heavy Industrial Machinery to take over the iconic Hummer brand failed to prosper. Reports said the Chinese government rejected the deal because Hummer vehicles do not meet current policy that encourages companies to build small-engine cars. China offers tax incentives on vehicles with engines smaller than 1.6 liters. The H2 Hummer has a 6.2-litter, gas-guzzling engine.
GM spokesman Nick Richards said it will take months before Hummer officially closes. As for the fate of Hummer’s around 3,000 workers, the spokesman said it is still not known whether they will be assigned to other brands or laid off.
Tengzhong initially agreed to buy the Hummer brand for a reported $ 150 million in October last year, with officials estimating that the sale will be completed in about four months. A Chinese government official speaking about the deal said Tenghzhong failed to provide a detailed purchase plan.