General Motor is to wrap up its Hummer deal with China's Tengzhong at the end of September, the Beijing Youth Daily reported on Monday.
The newspaper quoted unnamed sources as saying the deal signed in June was only a framework and the two sides had been negotiating on detailed terms. The newspaper also said it is preparing application materials to the National Development & Reform Commission (NDRC) and the Ministry of Commerce.
Tengzhong and GM said the Hummer vehicle assets will be sold to Tengzhong, without elaborating on financial terms.
Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. (Tengzhong), a private Chinese firm, emerged as the surprise buyer for the GM brand earlier this year, and the proposed sale of the Hummer brand was scheduled to close in the third quarter of this year.
The preliminary deal allows Tengzhong to keep the management and operational team along with the Hummer brand, and secure more than 3,000 jobs in the United States. The Chinese buyer will also assume existing dealer agreements relating to Hummer's dealership network.
Tengzhong, however, has to go through other procedures, including getting approval from the Ministry of Commerce and NDRC, before it can finish the deal with GM.
The construction machine maker said there will be no change on Hummer's original management, and the production base will remain in the US after the acquisition. Earlier, it was reported that Tengzhong might make Hummer in China.