General Motors has announced that the proposed deal with China’s Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) over the sale of HUMMER cannot be completed and as a result the brand will be wound down.
The deal with Tengzhong was expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at HUMMER dealerships around the country. The transaction would have also included plans by the Chinese firm to aggressively fund future HUMMER product programs, including possibly a compact H4 model.
Unfortunately, poor sales, growing public concern for the environment and the recession all added up to weaken HUMMER's sales chances, and it appears that the compounded affects have finally taken their toll.
GM will continue to honor HUMMER warranties, while providing service support and spare parts to current owners around the world.
For an overview of HUMMER’s short-lived time in the sun, check out Marty Padgett’s extensive report over at TheCarConnection.com.