DETROIT and SICHUAN PROVINCE, China -- Late yesterday, Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd and General Motors Corp. confirmed details of their proposed deal for Tengzhong to acquire the rights to the HUMMER brand, along with a senior management and operational team.

The major Chinese industrial machinery group also will assume existing dealer agreements relating to HUMMER's dealership network. As part of the deal, it is expected that Tengzhong will enter into a long-term contract assembly and key component and material supply agreement with GM. In an earlier statement, GM said it expects the deal, if successful, to secure more than 3,000 U.S. jobs.

Based in the Chinese province of Sichuan, Tengzhong is a privately owned company and a leading domestic manufacturer of road, construction and energy industry equipment. The company said it will expand into the premium off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for HUMMER's growth in the U.S. and around the world.

"The HUMMER brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing HUMMER to innovate and grow in exciting new ways under the leadership and continuity of its current management team," said Yang Yi, CEO of Tengzhong. "We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S."

HUMMER will continue to maintain its headquarters and operations in the U.S., and will continue to be managed by its existing leadership team. The team intends to expand HUMMER's dealer network worldwide, particularly into new and underserved markets such as China.

"Today, HUMMER is a globally recognized brand with excellent growth prospects, both in terms of new markets and new products for our existing markets," said James Taylor, HUMMER chief executive officer. "With Tengzhong's investment and strong support, we will be able to make our visions a reality. This transaction, if successful, will secure more than 3,000 U.S. jobs, and allow us to embark on a more aggressive global expansion, ensuring a successful future with our new partners."

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. The two companies said financial terms of the agreement will not be disclosed at this time.