It looks like the dawn of a new chapter in Hummer history. About an hour ago General Motors issued a press release stating that they have entered into a definitive agreement with Sichuan Tengzhong Heavy Industrial Machinery Company, Ltd (Tengzhong) that will allow Tengzhong to acquire the Hummer brand.
According to the press release, Hummer will continue to be managd by members of its existing leadership team. Further, GM's Shreveport assembly plant would continue to contract assemble the H3 and H3T and AM General's Mishawaka assembly plant would continue to assemble the H2. This production agreement will continue through June 2011, with an optional one year extension. The deal is expected to secure more than 3,000 jobs in the U.S. related to the sale and manufacturing of Hummer vehicles.
Once the transaction is a done deal, Hummer will add E85 FlexFuel capability to the 2010 H3 and H3T. The H2 is already set up for E85, so this means Hummer will be the only automaker to offer an alternative fuel powertrain in every model. Hummer is also in the process of obtaining emissions certification for a diesl-powered H3 that will be introduced in markets outside of North America. The brand's future product development will focus on improving efficiency and performance in current Hummer models with alternative fuel powertrains, more efficient gas engines, six-speed transmissions and diesel engines.