GM nearing deal on Hummer sale to Tengzhong

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General Motors Company is poised to sign a deal to sell its Hummer brand to heavy equipment maker, Sichuan Tengzhong. But even if the deal is signed, it still needs approval from both Washington and the Chinese government.

Representatives of Sichuan Tengzhong Heavy Industrial Machinery Corporation have been in the U.S. for the past nine days working on final details with GM. Both sides hope to sign a definitive sales agreement on Thursday or Friday, local time.

The purchase price is no known, but GM said in its bankruptcy filing that its Hummer brand could bring in 500 million dollars or more.

But even after the deal is signed, it must still be approved by both U.S. and Chinese governments. Chinese regulators initially expressed reservations about Tengzhong's ability to run such an enterprise.

In June, Sichuan Tengzhong announced that it had reached a tentative agreement with GM to buy the brand, which features large off-road vehicles that initially were developed for military use.

The company plans to invest 9.4 million dollars over five years.

A memo to the Michigan Economic Development Authority in September said the Hummer headquarters would also create another 641 jobs with other companies and generate 36.6 million dollars in additional revenue for the state through 2019, excluding the tax break costs.

Sichuan Tengzhong's CEO, Yang Yi, has said it will maintain Hummer's headquarters and operations in the U.S., while investing in research and development of more fuel-efficient vehicles.