Report: Hummer Tengzhong Deal Set To Finalize By End Of Q3

GM yet to hold talks over Hummer sale

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General Motors first confirmed the sale of its Hummer brand in August 2008 and then followed up the original announcement with the release of an official document for potential buyers just one month later. Poor sales, growing public concern for the environment and the recession all added up to weaken Hummer's sales chances, but eventually a buyer was found in the form of China’s Sichuan Tengzhong Heavy Industrial Machinery Co. (Tengzhong).

According to latest reports, Tengzhong expects the deal to be completed in the third quarter of this year. The actual amount of cash trading hands is still unclear but most reports estimate between $150 million to $200 million--significantly less than the $500 million that GM had sought last year.

The deal is expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at Hummer dealerships around the country. Most importantly, Tengzhong will likely maintain Hummer's complete dealership network if it succeeds in purchasing the SUV brand.

For more information on the terms of the deal, check out our previous story by clicking here.

[Reuters]