General Motors has entered into what is called a memorandum of understanding or MoU with an unidentified party to buy its HUMMER brand. No more details regarding the proposed transaction and how much this mystery buyer is paying were forthcoming.
What is understood though is that the HUMMER H3, many of which are built in South Africa, will cease production in Mzansi and move back to the US. I don’t know what will happen to the people who work on the H3 line or that part of the plant itself. GMSA CEO Steve Koch says his company had already factored in this relocation of H3 assembly and therefore there will be very minimal changes as a result.
Current owners of the H3 and those wishing to purchase in future have been assured that this transaction will not affect their warranties, service levels and other benefits attached to their H3 SUVs.
UPDATE: A Chinese company called Sichuan Tengzhong Heavy Industrial Machinery Company is the mystery HUMMER buyer. GM expects the transaction to be finalised by the beginning of October 2009.
