Tengzhong to complete Hummer purchase by 3rd quarter, GM wants Saab dealers to sign new agreement

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