GM inks deal to sell Hummer to Tengzhong

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General Motors and Sichuan Tengzhong Heavy Industrial Machinery have nailed down a deal to sell GM's iconic Hummer brand. It marks the first time that Chinese investors have stepped in as buyers in the US auto industry. Under the deal, Sichuan Tengzhong will acquire Hummer through an investment partnership.

Tengzhong will hold 80 percent of the investment firm, while Suolang Duoji, Lumena Resources' chairman and founder, will hold the remainder. Tengzhong will have the ownership of the Hummer brand as well as the right to use patents involved in producing Hummers. Financial terms have not been announced.

The Hummer sale is part of a drastic restructuring plan by GM, which also involves the disposal of its Saab, Opel and Saturn operations. Tengzhong, a little-known heavy machinery maker, has been in detailed negotiations with GM since it announced an initial acquisition plan in June.