Hummer faces shutdown after Chinese company bails

Interest rates to remain low, but sales of new homes fell

February 25, 2010

Hummer, the off-road vehicle that once symbolized America's love for hulking SUVs, faces a shutdown after its sale to a Chinese heavy equipment maker collapsed. Sichuan Tengzhong Heavy Industrial Machines Co. said Wednesday it pulled out of the deal to buy the company from General Motors Co. Tengzhong failed to get clearance from Chinese regulators within the proposed time frame for the sale, the Chinese manufacturer said. GM said it will continue to honor existing Hummer warranties. "GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner," said John Smith, GM vice president of corporate planning and alliances. GM has been trying to sell the loss-making brand for the past year and signed a deal with Tengzhong in October. Chinese regulators created difficulties from the start.

- Associated Press

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