General Motors may sign an agreement for the sale of the Hummer sportutility vehicle business to a Chinese machinery maker this week said two people familiar with negotiations. Executives from prospective buyer Sichuan Tengzhong Heavy Industrial Machinery Co. based in Chengdu China are expected to arrive in Detroit early this week for more negotiations with GM said the people who asked not to be named because the talks aren’t public. An agreement could be signed and announced during the trip one of the people said. It will be subject to US and Chinese regulatory approval before it will take effect. GM Chief Executive Officer Fritz Henderson is working to dispose of half of the auto maker’s US brands so the automaker can focus on the four that remain. The company is eliminating the Pontiac brand and deals are pending to sell its Saab brand to Swedish sports car maker Koenigsegg Automotive AB and Saturn to Penske Automotive Group Inc. “Since early June when GM announced that it reached a memorandum of understanding with Tengzhong for the potential sale of the Hummer brand the parties have been in frequent discussions working closely to finalise a definitive agreement” GM said in an emailed statement attributed to Hummer CEO Jim Taylor. “Ne gotiations continue to progress and the transaction will be announced upon the signing of the definitive agreement as soon as appropriate.” The companies signed a memorandum of understanding for the sale of Hummer in June. Regulators have not indicated any problems with the deal the people said. The BBC reported in June citing China National Radio that the Nation al Development and Reform Commission would block the sale on environmental grounds and because Tengzhong lacks expertise in passengercar production. The Ministry of Commerce has reached a consensus in ternally to approve the deal the National Business Daily reported citing an unidenti?ed ministry officer. GM has said it is working with both governments to make sure they understand the dea and the benefits to all parties. The Hummer division wil remain based in the US and is considering several US locations for a headquarters including the Detroit or Nashville areas Taylor 52 said in a June interview.
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