By Bob Blandeburgo
Associate Editor
Money Morning
General Motors Corp. (NYSE: GM) has sold its troubled Hummer division to privately held, China-based Sichuan Tengzhong Heavy Industrial Machinery Company. Terms of the deal were not disclosed.
The sale will save roughly 3,000 jobs in the United States, including those at 153 domestic dealerships.
"If you think about the qualities we'd want in a new owner for the brand, this buyer really met all the criteria," Hummer spokesman Nick Richards said without identifying Sichuan Tengzhong. "They've got a proven track record in international business, and they've got a long-term vision for the brand. They've got the capital to invest in more efficient vehicles, which is what's necessary to grow the brand."
GM continues to shop Saturn and Saab, Chief Financial Officer Ray Young said in a conference call, noting that 16 parties are interested in Saturn.
"And we're discussing product continuation agreements with these prospective purchasers," he said.
The company's Pontiac brand will be discontinued next year.
As for investment opportunities, Young said new shares will be available in the first or second quarter of next year at the earliest.
"In terms of the timing of that, '09 would be impossible because we're just starting up the new General Motors," he said. "There's going to be a lot of accounting issues that we're going to work through in order to get the books of new GM set up."
News and Related Story Links:
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The New York Times:
G.M. Sells Hummer but Does Not Name Buyer.
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MarketWatch.com:
GM CFO: New shares to trade earliest 2010.
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MarketWatch.com:
GM CFO: 16 parties have looked at buying Saturn.