GM to phase out Hummer after sale falls through

By Admin | Posted in Auto Industry News on Friday, February 26th, 2010 at

General Motors said on Wednesday that it will begin to wind down its Hummer brand after the company failed to complete a deal with China’s Sichuan Tengzhong Heavy Industrial Machines.

The proposed deal fell through after the Chinese company failed to secure government approval of the sale, Auto Week reports. GM has agreed to accept other bids for Hummer while it phases out the brand, although industry experts doubt that any deal will be reached.

“We have … 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’s 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,” he added.

The American automaker has announced that it will honor all warranties and will provide spare parts for owners of new and used Hummer models.

Meanwhile, General Motors finalized the sale of Saab to Spyker Cars on Tuesday and is currently phasing out its Saturn and Pontiac brands.

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