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Hummer Production Suspended Until China Approves Sale
11:24 a.m. EDT, January 15, 2010

General Motors will stop making Hummers today, January 15, 2010, while Chinese regulators are working to approve the sale of the brand to Sichuan Tengzhong Heavy Industrial Machinery Co.

When the acquisition has received a green light, the GM plant in Shreveport, Louisiana will resume its normal output of Hummer H3 and H3T models. The United States government has already approved the regulatory provisions required for the sale.

According to Kevin Wale, president of GM China Group, quoted in a story by Lindsay Chappell for Automotive News, the administrative sticking point is the fact that Sichuan Tengzhong makes heavy-machinery, not cars.

"They have rules that require that people can't just randomly go into key businesses," Wale said. "They have to get approval so they don't end up with . . . too many people trying to compete in key industries."

Under the terms of the sale agreement, the plant in Shreveport would continue to produce Hummer models for Sichuan Tengzhong through 2011, with a possible extension into 2012. If that does not occur, the plant will be closed. An additional diesel variation of the H3 will be offered in 2011 for sale globally.

Production of the Hummer H2 at the Mishawaka, Indiana plant was halted in December 2008, but that model's output will also resume upon finalization of the China deal. Although work at the Shreveport factory was also suspended last year, it resumed in October to ensure dealers a supply of 2010 models. There are currently about 2,100 units in inventory.


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