By Stephen Markley on August 25, 2009
Now that the purchase of Hummer by Tengzhong appears to be all but in the bag, an executive for the Chinese heavy machinery company has said that it will maintain Hummer’s network of auto dealerships throughout the U.S.
The deal appeared to be an iffy proposition earlier this summer. However, the Chinese commerce ministry seems to have dialed down its skepticism, and the opposition on state-run media has evaporated, as well.
Tengzhong has said it expects to close the deal this fall, and analysts estimate the final price as somewhere between $150 million and $200 million. This is well below the $500 million GM wanted for the brand. Hummer sold 799 vehicles last month compared to 1,877 purchased during the same period in 2008 while gas prices were at record levels.
Barring any last-minute surprises, it would appear that Hummer will become Chinese-owned well before 2010.