General Motors halts Hummer production until sale is completed

General Motors will stop production of Hummers at the end of this week as the automaker waits for Chinese regulators to approve the brand's sale to Sichuan Tengzhong Heavy Industrial Machinery Co.

Output of Hummer H3 and H3T models at GM's Shreveport, La., plant will resume once the pending acquisition is completed, Hummer spokesman Nick Richards said.

Richards declined to specify what issues remain to be approved by the Chinese government. He said the U.S. government has approved all regulatory issues.

Under the agreement, Shreveport will continue producing the models for Sichuan Tengzhong through 2011, with an option to extend the sourcing through 2012.

The Chinese buyers are scheduled to obtain an additional diesel version of the H3 from Shreveport in 2011 for global export markets, including China. The line is currently sold in 37 countries.

Contract production of GM's Hummer H2 model at the Mishawaka, Ind., plant of Hummer creator AM General LLC was halted in December 2008. Richards said that model also will resume output after the purchase deal is finalized.

Shreveport suspended Hummer production last year. Output resumed in October to supply dealers with 2010 models. Hummer accounts for only about a fourth of Shreveport's plant capacity. The factory also produces the Chevrolet Colorado and GMC Canyon pickups.

There are currently about 2,100 Hummers in inventory.

GM is scheduled to close the Louisiana plant after 2011.

By Lindsay Chappell- Automotive News