General Motors’ sale of its Hummer brand to China’s Tengzhong may be completed within a week.
The two companies have been working on a deal for Hummer since June, and an unnamed source said to be the discussions said a deal is imminent.
“Tengzhong executives have been traveling between the U.S. and China in the past months and more will arrive in Detroit soon,” the source told Reuters. “If there are no big surprises, an agreement could be finalized next week.”
The source also said that, as expected, Tengzhong is likely to keep Hummer’s senior management and operational team, as well as its dealership network.
The deal, reportedly worth $100 million, would also enter Tengzhong into a long-term agreement with GM over components, material supply and assembly. GM’s Shreveport, La. plant would be contracted to build the H3 and H3T models through 2010.
One final hurdle in the way of a Tengzhong’s Hummer acquisition is approval of the Chinese government. Earlier reports from a state-run radio station said the Chinese government may nix the deal but recent comments from China’s commerce ministry sounded more positive. The unnamed source said Chinese regulators will decide whether to approve the deal after it is finalized.