General Motors Co. announced plans to shut down Hummer on Wednesday after a bid to sell the utility vehicle brand to a Chinese equipment maker fell through.
Sichuan Tengzhong Heavy Industrial Machines Co. retracted their bid for Hummer after being unable to gain clearance from Chinese regulators in time for the deal’s completion. GM said it would continue to respect current Hummer warranties.
GM has been looking to sell off Hummer for over a year as the gas-guzzling military inspired SUVs became increasingly less attractive in the face of rising gas prices and heightened eco awareness. Earlier this week, private investors were still trying to complete the deal by arranging an off-shore entity before the Feb. 28 deadline.
Hummer marks the second botched sales attempt for GM during the recession. The company tried and failed to sell their Saturn Brand months ago. The company successfully handed off their Saab subdivision to a Dutch Carmaker in January.
GM has plans to concentrate on the Chevrolet, GMC, Cadillac and Buic, the, four subdivisions that remain since the sales of Saab and the closure of Pontiac and Hummer.
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