General Motors might sign an agreement for sale of its Hummer brand to China’s Sichuan Tengzhong Heavy Industrial Machinery later this week, media said yesterday, and the outline of the deal is disclosed online.
Executives from prospective buyer Tengzhong were expected to arrive in Detroit earlier this week for further discussions with GM, said insiders. An agreement could be signed and announced during the trip, according to Bloomberg News.
Since early June, when GM reached a memo of understanding with Tengzhong for the sale of the Hummer brand, the parties have been in frequent talks to finalize a definitive agreement, GM said. The deal is subject to U.S. and Chinese regulatory approval before it takes effect.
Sichuan Tengzhong has stated publicly that it intends to purchase the Hummer brand, but will not manufacture Hummer vehicles in China or acquire Hummer’s assets or a stake in parent company General Motors.
Major Chinese news portal 163.com said today that its exclusive sources have disclosed the outline or so-called “core contents” of GM-Tengzhong’s Hummer deal as follows:
1. Tengzhong will buy the intellectual property rights, including the trademark, patent right and other contents of Hummer;
2. Tengzhong will take over the sales network of Hummer;
3. After the acquisition, Tengzhong will operate the Hummer’s business via an offshore company;
4. Before 2012, Hummer vehicles will continue to be manufactured by GM, who will also provide all-around technical services;
5. Before 2012, Tengzhong will launch the new H3 and new H4 (CUV models);
6. The [Hummer] marketing maintenance and R&D (research and development) will not be stopped.