GM halts Hummer production until sale is finalized

The brass over at General Motors has suspended any further production of Hummer vehicles pending approval from the Chinese government with regards to its deal to sell the brand to Sichuan Tengzhong Heavy Industry Machinery Co., said a GM spokesperson today.

The Louisiana factory that produces the H3 and H3T – the last two Hummer models still in production – will remain open however, as the GMC Canyon and Chevrolet Colorado pick-ups are also produced there. As for now, there are no plans to lay off any of the 1,120 plant employees.

With sales of 325 units last month and 2,100 units in dealer inventories, the company feels that there is enough stock to get the brand through to the point when the deal will be approved, though there is no indication at this time of exactly when that point will come. It is assumed however, that the deal should be completed within the early part of 2010.

GM finalized the deal in October whereby the Chinese company will purchase 80% of the brand, with the other 20% being sold to private investors.

– By: Stephen Calogera

Source: CNNMoney