If you able recall from my previous post, GM had actually stopped assembling Hummer H3 in mid-2009 as it went through bankruptcy, but it resumed production recently in order to fill an 849 unit special order by Avis Car Rental after their closing down sales.

The history of final ever production H3 rolled out of GM’s Shreveport, Louisiana factory on 24 May 2010. 200 of the 900 remaining employees at Shreveport will be layoff by July and the rest of the Hummer staffs back at HQ in Detroit are either reassign to other subsidiaries or layoff as well. As expected, the story of Hummer is almost concluded.

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General Motors (GM) have officially announced on the same day as they posted a $4.3 billion loss for the second half of 2009. They will be shutting down the Hummer SUV brand and big discounts to move the remaining 2,200 vehicles since the chinese is not buying over it.

Buyers from USA can get $6,000 rebates on a 2009 model year Hummer H2 full-sized SUV or H3 mid-sized SUV.

General Motors is also offering $5,000 on the 2009 Hummer H3T, a pick-up version of the H3, and $4,000 on the few 2010 H3T that were made and remain in stock. Buyers with good credit can also 0% financing for six years on all Hummer models. The Hummer H3 prices start at about $31,000 in USA before discounts.

General Motors sold fewer than 300 Hummers last month. Hummer sales, which had been suffering anyway largely because of the vehicle’s reputation for poor fuel economy, have been hammered by uncertainty over the brand’s future.

To us, I think even if we have the chance to buy the H3 in Malaysia with the discounts. A $6,000 rebate may not make be a good deal since the brand will be shutting down, say five years from now, who’s going to want your car if you going to trade-in the Hummer SUV?

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Recently reported from the Reuters news, the China’s Tengzhong will maintain Hummer’s auto dealership network if it succeeds in purchasing the U.S. brand, amid growing sentiment that it may complete the controversial deal.

According to Tengzhong spokesperson statement, there will be no change in Hummer’s existing global sales network and the quality of its after sales services after the completion of the deal.

Doubts about Tengzhong’s lack of experience in the car industry had been swirling and the gas-guzzling nature of the U.S. SUV was also cited by state media as reasons for expected opposition from the Chinese government. However, the opposing voices have quietened down in recent weeks after China’s commerce ministry sounded a more positive note on the deal, saying Tengzhong’s move was normal for a company seeking to take advantage of the global downturn.

“Market sentiment on the Hummer has turned more positive lately as industry insiders and media come back to their senses from the initial shock,” said Chen Qiaoning, an analyst with ABN AMRO TEDA Fund Management. Furthermore, Chen added that the China government has little to lose giving the greenlight. Tengzhong is a privately-owned company and the Hummer deal won’t cost any state money.

However, Tengzhong still expects the deal to be completed in the third quarter this year, which media reports have priced at between $150 million to $200 million, much less than the $500 million that GM had sought last year.

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China’s government, which is focused on cutting down the breadth of its auto industry by focusing on fuel efficient vehicles, is apparently unlikely to approve the sale of General Motors’ Hummer unit to Sichuan Tengzhong Heavy Industrial Machinery, according to reports out of the Asian nation.

In other words, we are too optimistic to draw conclusions about whether or not China will approve of the purchase of Hummer. However, it does seem unlikely that Tengzhong would enter into the deal with the belief that the Chinese government would scrap the idea.

Moreover, Sichuan Tengzhong has to convince at least two Chinese government agencies that it can turn Hummer around, leading analysts to suggest that the chances of the deal going through are slim. We have to wish many luck to GM and Hummer this time.

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General Motors Corp. has struck a deal to sell its Hummer truck unit to a Chinese industrial business. A privately owned Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., based in China, will acquire the truck brand, which has been part of GM since 1999. Tengzhong said it plans to keep Hummer’s management team.

“We plan to … allow Humer to innovate and grow in exciting new ways under the leadership and continuity of its current management team,” said Yang Yi, chief executive of Tengzhong. Yang said the deal “will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S.”. The companies said the deal would likely close by the end of September.

As part of the deal, some GM plants will continue to build the Hummer brand for the new owner, at least for awhile. The company said its Shreveport, La., plant will keep building Hummers for the new owner until at least 2010.

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According to a report by the Wall Street Journal, GM plans to announce a tentative sale of the Hummer brand less than a day after filing for Chapter 11 bankruptcy protection. Although GM won’t release the name of Hummer’s possible future owner, the sources say that a deal could be struck by the end of the third quarter and the H2 and H3 will continue to be produced at GM’s plants in Indiana and Louisiana.

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