General Motors Company said today that it has started production of the 2010 Hummer H3 SUV and the H3T pickup at its Shreveport, LA plant as inventory continues to drop.

Inventory “is very low,” Hummer spokesman Nick Richards told Automotive News. As of November 1, Hummer had about 1,138 vehicles in the United States.

“We’re hungry for Hummer product,” said John Sutliff, president of Sutliff Cadillac, Hummer and Saab in Mechanicsburg, Pa. His dealership currently has two 2009 H3 SUVs and six 2009 H3T pickups. Richards said that the 2010 H3 SUVs should start hitting dealerships in early December.

The halt on production “wasn’t our decision,” he said. “It was based on everything going on around” GM’s sale of Hummer to China’s Sichuan Tengzhong Heavy Industrial Machinery Co.

The 2010 Hummer H3 and the H3T are now available with a new E85 Flex Fuel 5.3L V8 engine.

2010 Hummer H3 and 2010 Hummer H3T:

- By: Kap Shah

Hummer, which is on its way to becoming owned by China’s Sichuan Tengzhong Heavy Industrial Machinery, announced updates to its 2010 Hummer H3 and H3T mid-sized SUVs. The new additions include new colors and an available E85 Flex Fuel 5.3L V8 engine.

The 5.3L V8 Flex Fuel engine makes 300-hp with a maximum torque of 320 lb-ft. It is mated to GM’s Hydra-Matic 4L60 electronically controlled four-speed automatic transmission.

The new color choices for 2010 include Red Rock Metallic, Silver Stone Metallic, and Canyon Metallic.

Pricing for the 2010 Hummer H3 start at $33,390 while the 2010 H3T starts at $30,915. The H3T Alpha starts at $35,680. All models will hit dealerships next month.

Make the jump for the press release.

2010 Hummer H3 and 2010 Hummer H3T:

Press Release:

HUMMER Introduces Biofuel Capability, New Colors for the 2010 H3 and H3T

DETROIT – HUMMER announced today updates to the 2010 HUMMER H3 and H3T midsize all-terrain vehicles including the addition of three new exterior colors and an available E85 Flex Fuel capable 5.3L V8 engine as part of its commitment to offer a biofuel powertrain in all body styles by 2010. Both H3-based vehicles will begin arriving in dealerships before the end of 2009 in North America.

“In 2007, HUMMER committed to offer a biofuel powertrain in every vehicle by 2010 and follows through on that promise with the addition of a new 300-horsepower, E85 Flex Fuel capable 5.3L V8,” says James Taylor, HUMMER CEO. “This is just the first step in HUMMER’s evolution to offer responsible, yet highly capable all-terrain vehicles. Future models will be lighter, more efficient and will continue to offer the best blend of off-road capability and on-road performance.”

The new 5.3L V8 Flex Fuel engine is standard in all 2010 Alpha series’ models and is a powerful and efficient member of GM’s legendary small-block V-8 family. It is rated at 300 horsepower (224 kW) and 320 lb.-ft. of torque (434 Nm). An aluminum cylinder block is used with the H3 Alpha’s engine. It helps reduce overall mass and maintains a more desirable front-to-rear weight balance.

A Hydra-Matic 4L60 electronically controlled four-speed automatic transmission is paired with the 5.3L engine. Flat towing is enabled on all H3 and H3T models.

HUMMER also continues to expand customer choice with the introduction of three new premium colors for 2010, which include Red Rock Metallic, Silver Stone Metallic, and Canyon Metallic.

The H3 and H3T feature an extensive list of standard equipment, including full-time electronic four-wheel drive; Hill Start Assist; Stabilitrak electronic stability control system; four-wheel anti-lock brakes with traction control; roof-rail side curtain airbags and dual-stage frontal air bags with passenger sensing system; tire pressure monitoring system; OnStar; bluetooth hands-free capability and HUMMER’s premium five-year/100,000-mile powertrain warranty plan.

Pricing for the 2010 model year H3 remains unchanged from 2009, with a starting MSRP of $33,390. H3T pricing begins at $30,915, a slight $165 increase from 2009. HUMMER has lowered the 2010 H3T Alpha price $335 with a new MSRP of $35,680. All 2010 models also include destination charges of $780.

The 2010 HUMMER H3 and H3T are scheduled to arrive in dealerships in December 2009.

About HUMMER

HUMMER is premium all-terrain vehicle manufacturer, with a product line-up that consists of the H2, H2 SUT, H3 and award-winning H3T. HUMMER models are available today in 38 countries around the globe.

- By: Stephen Calogera

It was reported last week that China’s Sichuan Tengzhong Heavy Industrial Machinery has closed a deal with General Motors Company to buy the Detroit automaker’s HUMMER brand. Apparently, nothing is final just yet; Tengzhong is now in the process of seeking regulatory approval and aims to close the deal by early 2010.

“We have started communicating with the relevant regulatory bodies and will continue to support the application process in accordance with the requirements,” a spokeswoman for Tengzhong said.

Tengzhong, which has no experience in the auto industry, could put itself in a black hole by financing the development of a “greener” HUMMER brand by itself, said John Zeng, an analyst with consulting firm IHT Global Insights.

Zeng said that it would be hard for Tengzhong to get loans from Chinese banks.

It has been reported that Tengzhong will pay $150 million for HUMMER.

- By: Omar Rana

Source: Reuters

General Motors Company and China’s Sichuan Tengzhong Heavy Industrial Machinery Co., have announced that they have entered into a definitive agreement that will allow Tengzhong to acquire HUMMER from GM.

“Under the terms of the definitive agreement, the buyer will acquire the ownership of the HUMMER brand, trademark and tradenames, as well as specific IP license rights necessary for the manufacture of HUMMER vehicles. The buyer will also assume the existing dealer agreements relating to HUMMER’s dealership network,” GM said in a statement.

Tengzhong will now hold an 80 percent stake in HUMMER with 20 percent going to Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena

Financial terms of the agreement were not disclosed, but it was reported yesterday that Tengzhong paid $150 million for the brand.

Under the agreement, HUMMER would contract vehicle manufacturing, key components and business services from GM during a defined transitional time period. GM’s Shreveport assembly plant will continue to assemble the H3 and H3T and AM General’s Mishawaka assembly plant will continue to assemble the H2. Both plants will produce the models until June 2011 with an option extension to June 2012.

The deal is expected to secure more than 3,000 jobs in the U.S. related to the sale and manufacturing of HUMMER vehicles. James Taylor will continue on in his role as HUMMER’s CEO.

- By: Omar Rana

General Motors Company, which is working hard to cut its U.S. brand count in half, is trying to complete a deal to sell Hummer to Sichuan Tengzhong Heavy Industrial Machinery. According to a report by Bloomberg, the deal is said to be priced at $150 million.

Three unnamed sources said that GM hopes to announce a deal later today or tomorrow. In June, GM said it is expected to sell Hummer to the Chinese heavy machinery maker, which has no experience with the automotive industry.

Hummer declined to comment but a source said that details on the sale could be announced “any day.”

- By: Omar Rana

General Motors in the midst of selling its Hummer brand to a Chinese company and Michigan really wants to keep the brand local. Sichuan Tengzhong Heavy Industrial Machinery Co., plans to invest up to $9.4 million into a new HQ located in either Detroit or Auburn Hills in light of the Michigan Economic Authority’s approval on Tuesday of $20.6 million in state tax credits should the sale go through.

A final location on the facility is expected by October 31. The new headquarters will house staff working on design, engineering finance, purchasing, sales, service, and marketing, and is expected to create approximately 300 jobs directly, and another 640 indirectly. The average weekly wage of the created jobs is expected to be over $2,600.

So far, both Detroit and Auburn Hills ave. indicated willingness to offer property ax abatement for the new building.

- By: Stephen Calogera

Source: Free Press

has been a while since we’ve heard anything on the sale of Hummer. Sources today are saying that China’s Tengzhong may finalize a deal with General Motors as early as next week to acquire the U.S. automaker’s Hummer brand.

A source familiar with the deal said that Sichuan Tengzhong Heavy Industrial Machinery has been in detailed negotiations with GM since it announced a plan in June.

“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 went on to say that Tengzhong is expected to retain Hummer’s existing senior management and operational team. The Chinese company, which has no experience in the automotive industry, will also keep the dealership network of the in more than 30 countries, including China.

- By: Stephen Calogera

Source: Reuters

As a heads up – we are working on new egmCarTech. We have no timetable on when the new egmCarTech will be completed but we’re pretty sure you won’t be disappointed. It will have more features, more interactivity and will look a lot cleaner. Keep your hopes up – in the mean time, enjoy some random findings from around the Internet.

National Geographic picks the World’s Greatest Scenic Routes: The  world’s most widely read travel magazine has picked the world’s most beautiful, interesting, and off-beat road routes. Dive in to get directions, quizzes, photos, and more. – National Geographic

Largest U.S. Hummer dealership begins selling guns: Jim Lynch Hummer, the nation’s largest Hummer dealer, has some new inventory for it customers – tactile rifles, handguns, shotguns and ammunition. Lynch said that he began realizing two years ago that he’ll have to start selling something other than Hummers to keep his stores open.  ”It slowly started going down,” said Lynch. “And then with the fuel prices, sales really took a big dip. And again with the economic crisis.” – BND

Study shows electric-vehicle driver’s range anxiety: A study conducted by Aerovironment shows that electric-vehicle drivers are not willing to travel more than half the distance shown on their range indicator. While drivers said they were confident in the range listed by the EV, they wanted to conserve the considerable amount of energy left in their vehicle. Like most gasoline powered car drivers, EV drivers are unwilling to push their battery-powered cars to the limit. – AllCarElectric

- By: Stephen Calogera

It was reported last week that China’s National Development and Reform Commission (NDRC) is likely to reject Sichuan Tengzhong’s bid to buy Hummer since it feels that the Chinese company may not have enough experience and resources to run the SUV business.

General Motors said today that it will now begin talking with regulators this week in a move to get government approval for Tengzhong to buy Hummer by the end of September.

“We will start discussions with the Chinese government this week on the Hummer deal,” Micahel Albano, a spokesman with GM’s Asia Pacific operations said. “We can’t sign the deal unless we have approval from the government.”

The unusual step of GM engaging regulators so early in the process has raised a lot of skepticism surrounding the Tengzhong/Hummer deal.

- By: Mo Eladawy

Source: Reuters

A state radio reported yesterday that China’s top economic planning agency is likely to reject Sichuan Tengzhong’s bid to buy Hummer from General Motors. The National Development and Reform Commission (NDRC) says it is worried that Tengzhong doesn’t have enough experience and resources to run the Hummer SUV business.

The report also said that Hummer’s gas-guzzling SUV image doesn’t fit with the government’s policy of encouraging energy-efficient vehicles.

Earlier this month, GM confirmed that Tengzhong will acquire the rights for Hummer along with its senior management and operational team. GM said it expects the deal, if successful, to secure more than 3,000 US jobs.

- By: Omar Rana

Source: Reuters

Sichuan Tengzhong Heavy Industrial Machinery, the winning bidder for GM’s Hummer brand said that it expects the deal to be completed by October 2009.

The company’s general manager Yang Yi, said that Tengzhong has no plans to transfer Hummer equipment and technology to China from the United States. He said that the company also has no plans to take on any debt accrued by the business.

“I hope you can understand, but there are many things I cannot talk about,” Yi said. “We think a deal should be completed by the third quarter.”

Separately, GM wants its 220 U.S. Saab dealerships to sign an agreement by Friday to prepare them for a likely sale. The proposal makes no guarantee that all Saab dealerships will get to stay in business even if GM sells the brand to a new owner.

Koenigsegg  is said to be in the process of wrapping up the purchase of Saab by next month.

- By: Omar Rana

Source: Reuters and Automotive News

So now that HUMMER is going to be owned by a Chinese company, Sichuan Tengzhong Heavy Industrial Machinery Co., what type of vehicles are we going to see in the future? The folks over at The Detroit Bureau recently sat down with Hummer’s boss Jim Taylor to discuss just that and much more.

According to Taylor, Hummer is going to head towards CAFE compliance, meaning you’re going to see smaller and more fuel-efficient vehicles from the gas-guzzling brand.

“Think of the smaller H4 we were showing at the auto show and it could safely conjectured we would enter into that space,” Taylor said.

When asked about Hummer’s hybrid future and the recent 100 mpg Hummer plug-on prototype built by a supplier, Taylor said: “It’s a big number to take on, a ground-up hybrid or electric vehicle, but it’d make a lot of sense for the Hummer brand.”

Given about 5 years, Hummer plans on incorporating various forms of alternative propulsion including diesels, hybrids and plug-in hybrids.

“It’s a little-known fact we’re just launching a diesel in the H3 in South Africa,” said Taylor. “When we bring it back to Shreveport, our intent is to make a version for the U.S., but right now, it’s not (emission law) compliant and we have to decide whether to invest the money.”

As for the H2, Taylor said that the model will live one since it sets a strong brand image in Russia and China.

He said that Tengzhong’s control over where Hummer will be very hands-off. Hummer is expected to continue its ties with GM and will continue to contract manufacturing and other services from GM until a scheduled time period.

“They aren’t in the car business, so they won’t come and pretend they’re smarter than us, which is the risk when you’re acquired by another car company.”

You can read more if Taylor’s interview over at The Detroit Bureau.

- By: Kap Shah

Source: The Detroit Bureau

Turns out reports of GM selling Hummer to Chinese buyer Sichuan Tengzhong Heavy Industrial Machinery Co., are true.

The automaker has just released a press release stating that talks about the proposed transaction have advanced.

“Tengzhong, a major industrial machinery group, will acquire the rights to the premium off-road HUMMER brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to HUMMER’s dealership network. It is contemplated that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM. In an earlier statement, GM said it expects the deal if successful to secure more than 3,000 US jobs. The final terms of the deal are subject to final negotiations.”

Click through for the full press release.

Press Release:

Industrial Machinery Company To Invest in Growth and Global Expansion of Premium Off-Road Vehicle Brand; Deal is Expected to Secure Over 3,000 US Jobs

Tengzhong In Advanced Talks To Purchase HUMMER From GM In Strategic Acquisition

DETROIT and SICHUAN, June 2, 2009 – Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) and General Motors Corp. today confirmed details of their proposed transaction, pursuant to which, Tengzhong, a major industrial machinery group, will acquire the rights to the premium off-road HUMMER brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to HUMMER’s dealership network. It is contemplated that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM. In an earlier statement, GM said it expects the deal if successful to secure more than 3,000 US jobs. The final terms of the deal are subject to final negotiations.

Based in the Chinese province of Sichuan, Tengzhong is a privately-owned company and a leading domestic manufacturer of road, construction and energy industry equipment. It will expand into the premium off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for HUMMER’s growth in the U.S. and around the world.

“The HUMMER brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing HUMMER to innovate and grow in exciting new ways under the leadership and continuity of its current management team,” said Yang Yi, CEO of Tengzhong. Mr. Yang continued, “We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S.”

HUMMER will continue to maintain its headquarters and operations in the U.S., and will continue to be managed by its existing leadership team. The team intends to expand HUMMER’s dealer network worldwide, particularly into new and underserved markets such as China.

“Today HUMMER is a globally recognized brand with excellent growth prospects, both in terms of new markets and new products for our existing markets,” said James Taylor, HUMMER chief executive officer. “With Tengzhong’s investment and strong support, we will be able to make our visions a reality. This transaction, if successful, will secure more than 3,000 U.S. jobs, and allow us to embark on a more aggressive global expansion, ensuring a successful future with our new partners.”

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.

Credit Suisse is acting as exclusive financial advisor and Shearman & Stearling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.

- By: The Daily Auto Editor

Earlier this morning, GM announced that it has reached a tentative deal to sell its Hummer brand; however, it declined to name the buyer or the vale of the deal.

GM CFO Ray Young said the buyer for Hummer, after a year-long sale process, preferred to remain anonymous for now.

“It was their preference, and we respected that preference,” Young said. He said that GM would reveal the name and the price tag of the deal once both parties have a definitive agreement.

According to The New York Times, the buyer is Sichuan Tengzhong Heavy Industrial Machinery Co Ltd, a manufacturing company in China with goals of becoming an automaker.

If the buyer happens to be Sichuan Tengzhong Heavy Industrial Machinery, the move will mark the first time a Chinese buyer has bought an American automotive brand from a struggling U.S. automaker

GM said that the buyer would contract to build the H3 and H3T pickup at GM’s Shreveport, Louisiana, plant up until 2010. The Detroit automaker said that the investor would also aggressively fund future Hummer vehicles.

- By: Omar Rana

Source: Reuters

GM announced today that it has entered into a MOU with a buyer for Hummer, which it declined to name.

“The sale is expected to close by the end of third quarter of this year and is subject to customary closing conditions, including receipt of applicable regulatory approvals,” GM said in a statement.

The deal is expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at Hummer dealerships. GM said that the future transaction will also include plans by the new investor to aggressively fund future Hummer vehicles.

“HUMMER is a strong brand,” said Troy Clarke, President of GM North America. “I’m confident that HUMMER will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker.”

GM said that Hummer will continue to contract manufacturing and other services from GM until a scheduled time period. The H3 and the H3T will be produced at GM’s Shreveport Assembly plant through 2010.

“Other terms and conditions specific to the sale are not being disclosed at this time. Citi acted as financial advisor to General Motors Corporation,” GM said.

- By: Omar Rana

We love the American auto industry, and we’ve been awfully kind in not making fun of GM and Chrysler since most of that is done by the traditional media. However, with something like this – they are just asking for it.

So go ahead, use this post and polk your fun at General Motors. Whoever thought we’d see the word ‘Green,’ green grass and Hummer in the same picture.

- By: Kap Shah

Going into the 11th month of uncertainty over Hummer’s future, General Motors said today that it is postponing a decision on its Hummer brand for “a few weeks” as it works out details to complete a sale, reports Automotive News.

“Our efforts to sell Hummer are proceeding, and there are several parties interested — and I would say really interested — in the brand,” said GM’s president of North America Troy Clarke. “We’re still very much in the process, although that process is maturing.”

Clarke said that GM is still studying whether Hummer will be sold or shutdown altogether.

General Motors confirmed in June 2008 that it was putting Hummer up for sale. The move went into urgency when former CEO Rick Wagoner met with the U.S. Treasury Department on Feb. 17, 2009. 

- By: The Daily Auto Editor

Just days before General Motors heads to Washington, D.C. to present its updated restructuring plan to the U.S. Department of Treasury, ’sources’ have reported that the automaker is talks with two potential buyers of the Hummer brand.

Insiders familiar with the matter say that the two buyers include a private-equity firm and a Chinese company. No names were released. According to Automotive News, the General is looking for close to $500 million for Hummer another sources said.

As far as Saab goes, insiders say that GM is looking for funding from the Swedish government to fix the brand. Bloomberg has reported that GM is looking to secure at least $600 million in European Investment Bank loans.

Sources said that GM has already committed $400 million to launch Saab’s 9-5 sedan and 9-4 crossover later this year. GM is hoping to get Swedish funds along with its $400 million to keep Saab running for an eventual sale.