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A salesman passes by a Hummer at a dealer in New York, the United States, May 27, 2009. General Motors Corp (GM) announced on June 2 that it has entered into a memorandum of understanding (MoU) with a buyer for HUMMER, its premium off-road brand, a day after it filed for bankruptcy protection.[Xinhua]

General Motors Corp. announced on Tuesday it had entered into a memorandum of understanding (MoU) with a buyer for Hummer without disclosing the buyer's name or the price.

The deal came one day after GM, one of the world's largest automakers, filed for Chapter 11 bankruptcy. The transaction is the result of GM's strategic review of the Hummer brand and the company's ongoing restructuring efforts.

The sale is expected to be closed by the end of the third quarter this year, and is subject to customary closing conditions, including receipt of applicable regulatory approvals, GM said in a news release. Other terms and conditions specific to the sale are not being disclosed at this time.

The deal is expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at Hummer dealerships around the country, GM said.

The transaction also includes plans by the investor to aggressively fund future Hummer product programs. Under terms of the MoU, the identity of the purchaser and proposed financial terms of the agreement are not being released at this time.

"Hummer is a strong brand," Troy Clarke, president of GM North America, said. "I'm confident that Hummer will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker."

Hummer vehicles on sale ar seen at a dealer in New York, the United States, May 27, 2009. General Motors Corp (GM) announced on June 2 that it has entered into a memorandum of understanding (MoU) with a buyer for HUMMER, its premium off-road brand, a day after it filed for bankruptcy protection.[Xinhua]

As part of the proposed transaction, Hummer will continue to contract vehicle manufacturing and business services from GM during a defined transitional time period.

"GM has developed Hummer into a globally recognized off-road brand," James Taylor, Hummer's chief executive officer, said.

"The proposed agreement will enable us to continue that growth and maximize the brand's potential through new, innovative off-road vehicles with improved efficiency and alternative fuel power trains. Today's announcement is great news for Hummer's current and future customers, dealers, suppliers and employees around the globe," he said.

A Hummer is on sale at a dealer in Flint, Michigan, the United States, May 30, 2009. General Motors Corp (GM) announced on June 2 that it has entered into a memorandum of understanding (MoU) with a buyer for HUMMER, its premium off-road brand, a day after it filed for bankruptcy protection.[Xinhua]

(Xinhua News Agency June 3, 2009)