Deal to sell to Chinese firm collapses over green credentials

General Motors will wind down Hummer after a deal to sell it to Sichuan Tengzhong Heavy Industrial Machinery Company colalpsed

Sichuan Tengzhong agreed to buy Hummer last June for an estimated £100 million, but the deal is reported to have collapsed when it couldn't convince the Chinese Government that it could make Hummer more fuel efficient.

John Smith, vice president of corporate planning and alliances at Hummer owner GM, said: "GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner."

GM, which will continue to honour Hummer warranties, had hoped that the sale to Tengzhong would save up to 3000 jobs at Hummer factories and dealerships in the US. Hummer’s existing management had planned to stay with the company under its new owners.

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