Chinese firm buys Hummer

NYT reports that the GM division is being purchased by Sichuan Tengzhong Heavy Industrial Machinery Company, based in Chengdu. GM did not reveal the buyer this morning because Beijing officials first wanted to go through the agreement (the Chinese government retains veto rights). Analysts estimate that the purchase price is under $500 million.

Sichuan Tengzhong is known in China for making a wide range of road equipment, from bridge piers to highway construction and maintenance machinery. But even before the Hummer deal, the company has been moving more into heavy-duty trucks, including tow trucks and oil tankers.

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As a Chinese company, Sichuan Tengzhong could face a challenge in presenting the deal to American owners of Hummer. The brand has long sought to emphasize patriotism, stressing that the Hummer H1 was essentially the same vehicle built in the same factory as the Humvee that carries American soldiers into battle in Iraq and elsewhere.