GM to end Hummer as deal with Chinese firm fails
General Motors is to wind down operations of its Hummer vehicles – after failing to complete a planned takeover by a Chinese firm. GM did not comment on why the sale to China-based Tengzhong had collapsed. Reports have said Beijing had refused to approve the purchase. GM agreed to sell the brand last year, as […]
General Motors is to wind down operations of its Hummer vehicles – after failing to complete a planned takeover by a Chinese firm.
GM did not comment on why the sale to China-based Tengzhong had collapsed. Reports have said Beijing had refused to approve the purchase.
GM agreed to sell the brand last year, as it offloaded famous names it owned and went into bankruptcy protection.
Hummers were originally built as military off-road vehicles by a company called AM General.
The brand took off as US motorists flocked to the sport utility vehicles favoured by celebrities including Arnold Schwarzenegger.
In the late 1990s, GM bought Hummer from AM General, but sales have suffered recently as the gas-guzzling performance and military image have become less popular.
It sold 71,000 units in the U.S. in 2006. By 2008, sales were down to 9,000, according to Time Magazine.
Hummers weigh up to five tonnes and have fuel consumption of about 15 miles per gallon.
China is encouraging automakers to build more fuel- efficient cars, including hybrids, to help win sales overseas and to reduce oil imports and pollution at home.
Source: BBC