Hummer to be sold to a Chinese Firm(Tentative)

THE Chinese firm planning to buy the Hummer brand from struggling US auto giant General Motors said the market in China is likely to play an important role in its global strategy.

General Motors announced yesterday it had reached a tentative deal to sell the brand to privately-held Sichuan Tengzhong Heavy Industrial Machinery, a day after filing for bankruptcy.

"The company's strategy is to bring the Hummer brand global and that should certainly include the Chinese market,"

"The team intends to expand Hummer's dealer network worldwide, particularly into new and under-served markets such as China," it said.

The company, mainly operating in China, currently has no overseas plants and exports only accounted for a small portion of its revenue, according to the official, who declined to provide more details.

Analysts said the niche brand is likely to appeal to a growing group of newly rich Chinese who are interested in upscale SUVs with heavy-duty capabilities.

"Hummer will belong to the luxury segment of China's auto market. It features a military style that the existing SUVs in China do not have. Some high-income individuals who want cross-country ability will just like it."

Vehicle sales in China, which overtook the United States as the world's biggest auto market, hit a monthly record of 1.15 million units in April .