Hummer Brand Shuts Down After Talks Collapse

The sale of the Hummer brand from General Motors to Sichuan Tengzhong Heavy Industrial Machinery Co. has fallen through, despite the two companies putting pen to paper for the deal which would have been worth USD 150 million (RM 510 million). GM will not pursue new buyers, however, deciding to shut down Hummer for good.

GM did not provide any reasons for the break down in negotiations, although previous reports have pointed to the Chinese government's intervention as a major stumbling block. The Chinese government is reportedly concerned about Tengzhong's lack of experience in the automotive industry, as well as Hummer's polluting SUV-only model range.

Growing environmental awareness around the globe and the recession last year gave Hummer little chance of survival—GM sold a mere 9046 Hummers in 2009, down 67 percent from 2008. Following in the footsteps of Saturn and Pontiac, the Hummer shut down means that a total of more than 3000 American jobs would be lost.

AboutSeow Yaohan

Seow Yao Han strives to bring you the latest and the most comprehensive information on cars available in Malaysia. But it's never easy for him to talk and write cars in this part of the world because what you lust after is often not what you drive home. When the euphoria of test-driving that branded, super-expensive sports car dies down, he just goes home in his less-than-glamorous ride.