GM Could Seal Hummer Sale Friday: Report
DETROIT (
) --
General Motors
could seal the deal to sell its Hummer brand to China's
Tengzhong Heavy Industrial Machinery
for $150 million on Friday, the
Wall Street Journal
TheStreet Recommends
reports.
However, there is a possibility that China's central government could still back out from the deal, being aware of Hummer's reputation for excess gas-guzzling.
The deal would not only allow Tengzhong to take over the Hummer brand but also will help acquire the technology to produce Hummer's two products, the H2 and H3 sport-utility vehicles, the
Journal
reports.
The acquired brand would remain a U.S headquartered brand with manufacturing capability, but there also is a possibility that a Hummer factory would be built in China to help the brand expand globally, the
Journal
reports. Tengzhong is expected to retain Jim Taylor, Hummer's CEO, and take over core members of the brand's engineering team.
This article was written by a staff member of TheStreet.com.
