General Motors has announced that it will begin to wind down Hummer operations after the take over deal with a Chinese firm failed. Sources have reported that Beijing had refused to approve the take over, though as of yet no official statement has been given. One reason proposed by Klaus Paur, North Asia director of market research company TNS, is that China’s government is set on producing energy-efficient vehicles, and that the Hummer brand is fundamentally outside of this goal.
The deal was originally conceived last year, when GM went into bankruptcy protection and began divesting many of the famous brands it had purchased over the last few decades. The Sichuan province-based Tengzhong firm, which specializes in road and construction equipment and energy industries, sought to by the Hummer brand from GM. While Hummer’s reputation consists of military-styled, gas guzzling SUVs, Tengzhong’s mission was to improve fuel efficiency in the Hummer models. This mission included the introduction of a line of diesel engine Hummers.
In the wake of the failed purchase, GM has stated that they will still honor Hummer warranties. Likewise, GM will continue to provide vehicle service and spare part support for all current Hummer owners. While no word has been given as to when GM plans to halt production, chances are that like Saturn and Pontiac, Hummer will be phased out by the end of the year.
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