Thursday, February 25, 2010

GM Kills Off Hummer

General Motors will end production of the Hummer later this year after the deal with the Chinese buyer fell through.

Heavy equipment maker Sichuan Tengzhong Heavy Industrial Machines Co. pulled out of the deal for Hummer, known for its hulking, military-like SUVs, because it was unable to get clearance from Chinese regulators within the proposed deal timeframe, the manufacturer said in a separate statement.

GM said it will continue to honor existing Hummer warranties.

“We are disappointed that the deal with Tengzhong could not be completed,” said John Smith, GM vice president of corporate planning and alliances. “GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”

GM has been trying to sell the loss-making brand for the last year and found a suitor in Tengzhong, but resistance from Chinese regulators created difficulties from the start. As recently as Tuesday private investors were trying to set up an offshore entity in a last-minute effort to complete the acquisition head of a Feb. 28 deadline.

That’s okay, guys; there’s always Viagra.