Thursday, January 14, 2010

GM to stop Hummer production as sale looms


General Motors will halt Hummer production next week at its Louisiana plant until sale of the brand to a Chinese company is completed.

Hummer spokesman Nick Richards said it was unclear whether jobs would be affected at the plant in Shreveport, Louisiana, which also builds Chevrolet Colorado and GMC Canyon pickup trucks.

"It hasn't been determined what the impact will be but right now, but Hummer production is under a quarter of production" at the plant, Richards said.

GM agreed last year to sell Hummer to Sichuan Tengzhong Heavy Industrial Machinery and expected the deal to close early in 2010 after approval by US and Chinese regulators.

Assembly of Hummers will halt Jan. 19 because there's "sufficient inventory in the field" to sustain dealers while the sale makes its way through the regulatory process, Richards said.

Richards said the company still expects to get regulatory approval and to complete the deal.

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