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

Index Last Change % Change
Dow 17,121.61 -279.14 -1.60%
Nasdaq 4,592.02 -115.96 -2.46%
S&P 500 1,999.06 -38.35 -1.88%
Treasuries 1.46 -0.12 -7.66%
Data as of 2:37pm ET
Company Price Change % Change
Bank of America Corp... 12.18 -0.82 -6.31%
Citigroup Inc 38.56 -1.74 -4.32%
Ford Motor Co 12.06 -0.46 -3.66%
General Electric Co 29.29 -0.53 -1.78%
Micron Technology In... 12.19 -1.02 -7.72%
Data as of 2:22pm ET
Sponsors

Sections

Priceline has been one of the hardest hit stocks since the Brexit. Airlines and hotels have also suffered but Priceline generates more than two-thirds of its sales from Europe. So it could get suffer more than other travel companies. More

The fallout of the UK referendum vote to leave the European Union undercuts central banks' ability to buoy the global economy. More

Yankees reach deal with StubHub to make it easier to list tickets on StubHub site, which could drive down the price of tickets paid by fans. More