The terms of the deal state that GM will continue to built the H3 and H3T through June of 2011 according to sources at one Chevy dealership Peoria IL. This contract can be extended until June 2012.
Although financial terms have not officially been disclosed, the deal will reportedly yield GM $150 million. According to Philadelphia Used Cars, the CEO of Hummer, James Taylor, will also stay on following new ownership. Thanks to Hummer’s niche appeal, and its experienced leadership team, GM CEO Fritz Henderson has acknowledged that the sale will spawn a positive, new chapter for the Hummer brand.
The deal is good news for Hummer as Louisville Buick explains it will save about 3,000 U.S. jobs. But the dealer is great for Tengzhong now that it is one of the few Chinese automakers that has a robust North American dealer network. Additionally, Hummer has already been developing FlexFuel compatibility for the H3 and H3T and the company has also been researching more fuel efficient technologies and diesels which will make it more competitive abroad.
Since GM has emerged from bankruptcy, it has held on to brands that are no longer yielding significant profits. With Hummer’s sale nearly finalized, it eliminates yet another lingering problem.
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