By Dave Thomas
GM’s planned sale of the Hummer brand to China’s Sichuan Tengzhong Heavy Industrial Machinery Co. has fallen through. GM says it will wind down all operations for the brand.
“One year ago, General Motors announced that we were going to divest Hummer, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. 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."
GM says it will honor all warranties and provide service and parts through other GM dealers. This is the same process that Saturn and Pontiac went through in the past year since GM’s restructuring.
Hummer sales fell 67% in 2009 compared with 2008 to just 9,046 units. Reports from Bloomberg earlier today pointed to the Chinese government’s desire to portray a green image as its huge population is increasingly buying more cars as a reason it would not approve the sale.