General Motors will begin the wind down of the Hummer brand as the sale to Chinese company Sichuan Tengzhong collapsed. The sale was pending approval from the Chinese government, which was ultimately denied.
“We have since considered a number of possibilities for Hummer along the way, and we are disappointed that the deal with Tengzhong could not be completed,” said John Smith GM vice president of corporate planning and alliances. “GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”
Sichuan Tengzhong’s acquisition of the Hummer brand was reportedly on shaky ground as of earlier this week. The deadline for the sale between GM and Tengzhong was originally set for January 31st, but was later extended to February 28th due to the questionable response from the Chinese government on the deal.
With the Chinese government’s waning approval, Reuters had previously reported that a desperate Tengzhong was securing offshore investment in order to sidestep the need for Chinese regulatory approval. Regardless, it appears that Hummer will likely meet the same fate as Pontiac and Saturn.
The once beloved SUV has suffered a huge blow due to the slumping economy. One North Haven used Jeep observes that Chrysler was a little more flexible in offering smaller, fuel-efficient products like the Compass and Patriot, while Hummer failed to change with the times. Conversely, the demise of the brand will give some Ringgold Chevrolet buyers fewer options when it comes to larger SUVs, which may prove to be beneficial for some dealers.
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