Re: Hummer Sold !!!!
June 2 (Bloomberg) -- General Motors Corp. plans to sell
its Hummer brand of sport-utility vehicles to Sichuan Tengzhong
Heavy Industrial Machinery Co. Ltd., a Chinese equipment maker,
according to five people familiar with the situation.
GM, which filed for bankruptcy protection yesterday, has a
memorandum of understanding with the Chengdu, China-based
company, said the people, who declined to be identified because
the agreement is confidential. At least one other party is still
interested in buying Hummer, though those talks are on hold, one
of the people said.
The deal should be completed by the end of the third
quarter, Detroit-based GM said in a statement today disclosing
the memorandum of understanding. The biggest U.S. carmaker
didn?t identify the buyer or financial terms of the accord.
Hummer was estimated to be worth $500 million, Chief Executive
Officer Fritz Henderson said in bankruptcy court documents.
Tengzhong is a privately owned maker of special-use
vehicles, structural components for highways and bridges, and
construction machinery, according to its Web site. A call to the
company after regular business hours was not answered. A GM
spokesman, Nick Richards, said he could not comment on
speculation.
GM won approval in its first day in bankruptcy court to
sell assets as soon as next month after collapsing under $172.8
billion in debt and failing to adapt to consumer demands for
models that use less fuel. It also expects to shed Saturn and
Saab as part of its restructuring.
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