Detroit, Feb 25: With the collapse of the planned sale deal with a Chinese heavy equipment manufacturer, General Motors may be forced to wipe out the iconic American SUV Hummer.
As Chinese regulators rejected a 150 million dollar bid, Sichuan Tengzhong Heavy Industrial Machines Co on Wednesday, Feb 24 announced that it is pulling out of the deal.
This comes as a major blow to General Motors Co, which emerged from bankruptcy in Jul 2009.
GM is trying to wash its hands off all its unprofitable businesses so that it can focus on four core brands Chevrolet, Cadillac, Buick and GMC.
The company has been on a campaign to sell the Hummer since 2009 and signed a deal with the Chinese company in Oct 2009. The reluctant Chinese regulators have been setting up road blocks for the deal from the beginning.
"We are disappointed that the deal with Tengzhong could not be completed," said John Smith, GM vice president of corporate planning and alliances.
So, this is the end of the road for America's hulking Sports Utility Vehicle icon Hummer. However, the company will be honouring existing Hummer warranties.
"GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner," Smith added.