10/09/2009
Statement Issued On Completion Of Definitive Purchase Agreement For Hummer Sale To Sichuan Tengzhong
BATON ROUGE, La. -- A definitive purchase agreement has been
reached for the sale of Hummer from GM to the Sichuan Tengzhong
Heavy Industrial Machinery Co. Ltd. If approved by Chinese
officials and completed as planned, the acquisition is expected to
ensure that Hummer vehicles will continue to be manufactured at the
former GM facility in Shreveport, La., through at least June
2011.
As a result of GM's recent bankruptcy reorganization, the
Shreveport facility now is owned by Motors Liquidation Company, the
"old" GM entity, which currently leases the facility to GM.
Gov. Bobby Jindal issued the following statement on Sichuan
Tengzhong's acquisition of the Hummer brand and the future of the
Shreveport facility:
"Protecting the jobs and future of the Shreveport facility has
been one of our top priorities since early last year, and we
certainly see this expected development as a positive move in that
direction.
"While we are pleased that Hummer vehicles will continue to be
assembled in Shreveport through at least June 2011, we will
continue to pursue all actions necessary to help keep this facility
permanently open and return it to full production levels.
"Since learning of GM's troubles last year, we have remained in
regular communications with GM executives to explore and pursue all
options to restore the Shreveport facility to full operations. In
recent months, our outreach efforts have expanded to executives of
Hummer and Motors Liquidation Company, as well as Sichuan Tengzhong
representatives, as we've worked to preserve long-term production
of Hummer vehicles in Shreveport."
Louisiana Economic Development Secretary Stephen Moret issued
the following statement about some of the critical next steps for
the companies and Shreveport's competitive advantages:
"Although we are encouraged by this significant and expected
development, final completion of the sale transaction will require
approval by Chinese authorities, and of course there is work to be
done to convince Hummer executives that Shreveport is the right
long-term location for assembly of Hummer vehicles. We currently
expect that Hummer executives will consider a variety of locations
for long-term manufacturing operations, including but not limited
to Shreveport.
"Northwest Louisiana boasts some of GM's most productive workers
and the Shreveport facility was one of the most modern in the GM
network prior to the company's bankruptcy reorganization. These
factors represent significant competitive advantages and will help
us secure the best possible long-term outcome for the facility.
"In addition to the Hummer opportunity, we have several viable
options on the table that we will continue to pursue to secure and
increase jobs at the Shreveport facility. This will remain a top
priority of our administration."
