Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Hummer to close after collapse of Chinese deal

By Chris Isidore, senior writer


NEW YORK (CNNMoney.com) -- General Motors' deal to sell its Hummer brand to a Chinese automaker fell through Wednesday and the company said it now plans to shut down the brand.

GM did not give any details about why the agreement to sell Hummer to Sichuan Tengzhong Heavy Industrial Machines Co. Ltd. could not be completed, saying only that it was disappointed it was unable to close the deal.

The large SUV brand is based on the Humvee military vehicle. It was always a niche vehicle but its image and sales were hit particularly hard by rising gasoline prices earlier this decade. Last year, GM only sold 9,046 Hummers, down 67% from 2008.

Hummer is the third brand that GM is being forced to shut down as part of its bankruptcy reorganization last year. A deal to sell Saturn fell through and GM is also closing the Pontiac brand, which it never attempted to sell.

Chinese automakers have shown interest in buying established western brands as companies there strive to become more global players. Geely is in the process of buying the Volvo brand from Ford Motor (F, Fortune 500) and Beijing Automotive Industry Holdings Co. bought the rights and technology to build some Saab models in China from GM. To top of page

Search for Jobs

Index Last Change % Change
Dow 20,810.32 34.72 0.17%
Nasdaq 5,835.51 -25.12 -0.43%
S&P 500 2,363.81 0.99 0.04%
Treasuries 2.39 -0.03 -1.24%
Data as of 6:14pm ET
Company Price Change % Change
Chesapeake Energy Co... 5.75 -0.17 -2.87%
Bank of America Corp... 24.58 -0.21 -0.85%
Boston Scientific Co... 24.48 -0.68 -2.70%
NVIDIA Corp 100.49 -10.27 -9.27%
HP Inc 17.60 1.40 8.64%
Data as of 4:03pm ET
Sponsors

Sections

Boeing unveiled its new, longer 737 Max 9 airliner earlier this month, the second member of the updated single-aisle jet family. The first aircraft will deliver to airlines starting in 2018. More

Republican lawmakers have been questioned, booed and heckled at recent town halls by constituents pushing their representatives to get President Trump's tax returns. More

An Uber spokeswoman confirmed the authenticity of the message, which directly references Fowler and the accusations. More