US carmaker General Motors Corp announced on Wednesday that it would start winding down its loss-making Hummer brand of sports-utility vehicles after the collapse of a deal to sell the subsidiary to a Chinese company.
US carmaker General Motors Corp announced on Wednesday that it would start winding down its loss-making Hummer brand of sports-utility vehicles after the collapse of a deal to sell the subsidiary to a Chinese company.
GM did not say why the sale to China's Sichuan Tengzhong Heavy Machines Co Ltd, which was announced last year, had failed. The Wall Street Journal reported that the deal did not receive the approval from the Chinese regulators.
Hummer's sale to Tengzhong was first announced in June, but speculation mounted almost immediately that China's government might reject the plan over environmental concerns.
"We are disappointed that the deal with Tengzhong could not be completed," said John Smith, GM's vice president of corporate planning and alliances. "GM will now work with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner".
Hummer was one of a series of brands that GM put on the market last year as the largest US carmaker was forced into bankruptcy. Swedish subsidiary Saab was saved last month with a sale to Dutch maker Spyker Cars.
Hummer joins Pontiac and Saturn in facing elimination as GM looks to rebound from last year's bankruptcy with a focus on four key brands: Chevrolet, GMC, Cadillac and Buick.
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