Earlier this week, General Motors confirmed it had signed a memorandum of understanding with a Chinese machinery company. GM says it does not expect the sale of its Hummer brand to meet any U.S. regulatory opposition.
The New York Times later claimed that the Chinese buyer was Sichuan Tengzhong, a privately owned company that has no experience in the automotive industry. The deal is GM’s first announcement of an asset sale since entering bankruptcy.
“We don’t expect any problems in terms of the sale process,” GM CFO Ray Young said. “In fact, we’re feverishly working to finalize agreements.”
He added: “This will allow the Hummer brand to continue both in the United States and globally. Also, we are hopeful that this will preserve over 3,000 jobs here in the United States.”
The sale is expected to generate less than $500 million for GM. Nevertheless, it is attracting a lot of attention since it marks the first time that a Chinese buyer has connected with one of the cash-strapped U.S. automakers.
Source: Automotive News