Rump- GM sells Hummer to Chinese company.

GM to Sell Hummer to China’s Tengzhong, Helping Shed Brands 

By Katie Merx and Cathy Chan

June 3 (Bloomberg) — General Motors Corp., seeking to shed assets to emerge from bankruptcy, agreed to sell the Hummer sport-utility vehicle brand to China’s Sichuan Tengzhong Heavy Industrial Machinery Co. 

Tengzhong will assume Hummer’s dealer agreements and a senior management team, the companies said in a joint statement yesterday. GM and Tengzhong also plan to form a long-term contract assembly and supply agreement. Hummer is worth an estimated $500 million, GM said in bankruptcy court documents. 

Selling Hummer will secure more than 3,000 U.S. jobs and help GM move toward a goal of offloading four U.S. brands to exit bankruptcy as a leaner, more profitable company. The deal may also help Tengzhong grow in China’s SUV market, which surged 25 percent last year on rising affluence

This is what the Chinese should do, spend US dollars in America to buy worthless US assets. The 3000 US jobs will be outsourced to China as soon as the Chinese government can figure out how to evade the agreements mentioned above.

AM General makes the Hummer sheet metal in a GM- built Mishawaka, Indiana factory and assembles it (currently) on a GMC/Chevrolet SUV chassis. AM General is not a party to this agreement.

It is not clear whether AM General’s General Engine Products is included in this agreement. GEP represents another joint production agreement between GM and AM General. I’m sure the Chinese would love to get their hands on this plant.

Good luck to the Chinese on their entry into the automotive ‘Stupid’ market.