GM to sell Hummer to Chinese firm

General Motors (GM) announced one day after filing for bankruptcy protection in the US that it would sell its Hummer brand to a Chinese construction equipment maker, the Wall Street Journal reported. Privately-owned Sichuan Tengzhong Heavy Industrial Machinery will buy the brand from GM for an undisclosed price expected to be less than US$500 million. The Chinese firm has no track record of automobile manufacturing, its expertise lying in the production of construction, road, and energy industry equipment. Hummer’s CEO Jim Taylor said Sichuan Tengzhong intends to keep the bulk of Hummer’s operations in the US, though the firm will invest in expanding the brand overseas. GM estimates that the sale will save 3,000 American jobs, a fact lauded by the Obama administration, which helped steer GM towards bankruptcy. However, the company stressed that its China business – a joint venture with local firm Shanghai Automotive Industry Corp – is not for sale. GM plans to expand in the China market.