Sichuan Auto said to be in talks to buy Hummer

Sichuan Auto Industry Group is in talks to buy General Motors’ struggling Hummer sport-utility vehicle (SUV) unit, Bloomberg reported, citing people familiar with the matter. Sichuan Auto is one of China’s smallest car makers, with about US$146 million in assets, according to the company’s website. The Chinese auto maker may pay up to US$500 million for the Hummer unit, which has seen its sales plunge by 60% in January. Sichuan Auto was set up in May 1994 and taken over by real estate developer Fulin Group in 2006. The company sells Yema brand SUVs and buses and has the capacity to make 5,000 buses, 30,000 passenger vehicles and 50,000 engines per year, according to its website.